To link to the entire object, paste this link in email, IM or documentTo embed the entire object, paste this HTML in websiteTo link to this page, paste this link in email, IM or documentTo embed this page, paste this HTML in website

OKLAHOMA
REAL ESTATE
LICENSE CODE
AND
RULES
As of July 1, 2011
THE OKLAHOMA REAL ESTATE COMMISSION
Executive Office
Shepherd Mall
2401 N.W. 23rd Street, Suite 18
Oklahoma City, Oklahoma 73107-2431
www.orec.ok.gov
OKLAHOMA REAL ESTATE COMMISSION
Members
Charles Barnes
Mike Cassidy
Peter Galbraith
John Mosley
Randy Saunier
Stephen Sherman
Martin VanMeter
This publication, printed by the University of Oklahoma Printing Services, is issued by the Oklahoma Real Estate
Commission, as authorized by Anne M. Woody, Executive Director. 2,000 copies have been prepared and distributed
at no cost to the taxpayers of Oklahoma. The entire cost of preparing this publication has been borne by the Real
Estate Licensees through their Education and Recovery Fund Fees. Copies have been deposited with the Publications
Clearinghouse of the Oklahoma Department of Libraries.
During 2011, the License Law and Rules were again amended. This
booklet reflects those changes and is so designed that it may be
inserted in the back of the Oklahoma Real Estate Commission study
manuals; thereby providing you with current information and a ready
reference on the License Law and Rules, as amended.
1
Supplement
license Code Amended
effective August 26, 2011
House Bill 1598
SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 858-
515.1 of Title 59, unless there is created a duplication in numbering, reads as follows:
A. In connection with any real estate transaction, the size or area, in square footage or otherwise, of the subject
property shall not be required to be provided by any real estate licensee, and if provided, shall not be considered
any warranty or guarantee of the size or area information, in square footage or otherwise, of the subject property.
B. 1. If a real estate licensee provides any party to a real estate transaction with third-party information con-cerning
the size or area, in square footage or otherwise, of the subject property involved in the transaction, the
licensee shall identify the source of the information.
2. For the purposes of this subsection, “third-party information” means:
a. an appraisal or any measurement information prepared by a licensed appraiser,
b. a survey or developer’s plan prepared by a licensed surveyor,
c. a tax assessor’s public record, or
d. a builder’s plan used to construct or market the property.
C. A real estate licensee has no duty to the seller or purchaser of real property to conduct an independent inves-tigation
of the size or area, in square footage or otherwise, of a subject property, or to independently verify the
accuracy of any third-party information as such term is defined in paragraph 2 of subsection B of this section.
D. A real estate licensee who has complied with the requirements of this section, as applicable, shall have no
further duties to the seller or purchaser of real property regarding disclosed or undisclosed property size or area
information, and shall not be subject to liability to any party for any damages sustained with regard to any con-flicting
measurements or opinions of size or area, including exemplary or punitive damages.
SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 858-
515.2 of Title 59, unless there is created a duplication in numbering, reads as follows:
A. If a real estate licensee has provided any third-party information, as defined in paragraph 2 of subsection B
of Section 1 of this act, to any party to a real estate transaction concerning size or area of the subject real prop-erty,
a party to the real estate transaction may recover damages from the licensee in a civil action only when
a licensee knowingly violates the duty to disclose the source of the information, as required in paragraph 1 of
subsection B of Section 1 of this act.
B. The sole and exclusive civil remedy at common law or otherwise for a violation of paragraph 1 of subsection
B of Section 1 of this act by a real estate licensee shall be an action for actual damages suffered by the party as
a result of such violation and shall not include exemplary or punitive damages.
C. For any real estate transaction commenced after the effective date of this act, any civil action brought pursu-ant
to this section shall be commenced within two (2) years after the date of transfer of the subject real property.
D. In any civil action brought pursuant to this section, the prevailing party shall be allowed court costs and
reasonable attorney fees to be set by the court and collected as costs of the action.
E. A transfer of a possessory interest in real property subject to the provisions of this act may not be invalidated
solely because of the failure of any person to comply with the provisions of this act.
2
F. The provisions of this act shall apply to, regulate and determine the rights, duties, obligations and remedies,
at common law or otherwise, of the seller marketing his or her real property for sale through a real estate
licensee, and of the purchaser of real property offered for sale through a real estate licensee, with respect to
disclosure of third-party information concerning the subject real property’s size or area, in square footage or
otherwise, and this act hereby supplants and abrogates all common law liability, rights, duties, obligations and
remedies of all parties therefor.
license Code Amended
effective november 1, 2011
Senate Bill 648
SECTION 1. AMENDATORY 59 O.S. 2001, Section 858-307.2, as amended by Section 4, Chapter 274,
O.S.L. 2008 (59 O.S. Supp. 2010, Section 858-307.2), is amended to read as follows:
§858-307.2. A. Beginning November 1, 2004, as a condition of renewal or reactivation of the license, each
licensee with the exception of those exempt as set out in this section shall submit to the Oklahoma Real Estate
Commission evidence of completion of a specified number of hours of continuing education courses approved
by the Commission, within the thirty-six (36) months immediately preceding the term for which the license is
to be issued. The number of hours, or its equivalent, required for each licensed term shall be determined by the
Commission and promulgated by rule. Each licensee shall be required to complete and include as part of said
continuing education a certain number of required subjects as prescribed by rule.
B. The continuing education courses required by this section shall be satisfied by courses approved by the
Commission and offered by:
1. The Commission;
2. A technology center school;
3. A college or university;
4. A private school;
5. The Oklahoma Association of Realtors, the National Association of Realtors, or any affiliate thereof;
6. The Oklahoma Bar Association, American Bar Association, or any affiliate thereof; or
7. An education provider.
C. The Commission shall maintain a list of courses which are approved by the Commission.
D. The Commission shall not issue an active renewal license or reactivate a license unless the continuing educa-tion
requirement set forth in this section is satisfied within the prescribed time period.
E. The provisions of this section do not apply:
1. During the period a license is on inactive status;
2. To a licensee who holds a provisional sales associate license;
3. To a nonresident licensee licensed in this state if the licensee maintains a current license in another state or
states and has satisfied the continuing education requirement for license renewal in that state or states. If the
nonresident licensee is exempt from the continuing education requirements in all states where the nonresident
holds a license, the nonresident licensee shall successfully complete this state’s continuing education require-ment
for license renewal or reactivation; or
4. To a corporation, association, partnership or branch office.
3
SECTION 2. AMENDATORY 59 O.S. 2001, Section 858-401, as amended by Section 3, Chapter 142,
O.S.L. 2004 (59 O.S. Supp. 2010, Section 858-401), is amended to read as follows:
§858-401. A. In addition to any other penalties provided by law, any person unlicensed pursuant to The
Oklahoma Real Estate License Code who shall willingly and knowingly violate any provision of this Code,
upon conviction, shall be guilty of a misdemeanor punishable by a fine of not more than One Thousand Dollars
($1,000.00), or by imprisonment in the county jail for not more than six (6) months, or by both such fine and
imprisonment.
B. In addition to any civil or criminal actions authorized by law, whenever, in the judgment of the Oklahoma
Real Estate Commission, any unlicensed person has engaged in any acts or practices which constitute a violation
of the Oklahoma Real Estate License Code, the Commission may:
1. After notice and hearing, and upon finding a violation of the Code, impose a fine of not more than Five
Thousand Dollars ($5,000.00) or the amount of the commission or commissions earned, whichever is greater
for each violation of the Code for unlicensed activity;
2. Make application to the appropriate court for an order enjoining such acts or practices, and upon a showing
by the Commission that such person has engaged in any such acts or practices, an injunction, restraining order,
or such other order as may be appropriate shall be granted by such court, without bond; or
3. Impose administrative fines pursuant to this subsection which shall be enforceable in the district courts of this
state. The order of the Commission shall become final and binding on all parties unless appealed to the district
court as provided in the Administrative Procedures Act. If an appeal is not made, such order may be entered on
the judgment docket of the district court in a county in which the debtor has property and thereafter enforced in
the same manner as an order of the district court for collection actions.
C. Notices and hearings required by this section and any appeals from orders entered pursuant to this section
shall be in accordance with the Administrative Procedures Act.
D. Such funds as collected pursuant to this section shall be deposited in the Oklahoma Real Estate Education
and Recovery Fund.
license Code Amended
effective november 1, 2011
Senate Bill 684
SECTION 1. AMENDATORY 59 O.S. 2001, Section 858-301, as last amended by Section 1, Chapter
114, O.S.L. 2010 (59 O.S. Supp. 2010, Section 858-301), is amended to read as follows:
§858-301. It shall be unlawful for any person to act as a real estate licensee, or to hold himself or herself out
as such, unless the person shall have been licensed to do so under this the Oklahoma Real Estate License Code.
However, nothing in this section shall:
1. Prevent any person, partnership, trust, association or corporation, or the partners, officers or employees of
any partnership, trustees or beneficiaries of any trust, association or corporation, from acquiring real estate for
its own use, nor shall anything in this section prevent any person, partnership, trust, association or corporation,
or the partners, officers or employees of any partnership, trustees or beneficiaries of any trust, association or
corporation, as owner, lessor or lessee of real estate, from selling, renting, leasing, exchanging, or offering to
sell, rent, lease or exchange, any real estate so owned or leased, or from performing any acts with respect to
such real estate when such acts are performed in the regular course of, or as an incident to, the management,
ownership or sales of such real estate and the investment therein;
2. Apply to persons acting as the attorney-in-fact for the owner of any real estate authorizing the final consum-mation
by performance of any contract for the sale, lease or exchange of such real estate;
3. In any way prohibit any attorney-at-law from performing the duties of the attorney as such, nor shall this
Code prohibit a receiver, trustee in bankruptcy, administrator, executor, or his or her attorney, from performing
4
his or her duties, or any person from performing any acts under the order of any court, or acting as a trustee
under the terms of any trust, will, agreement or deed of trust;
4. Apply to any person acting as the resident manager for the owner or an employee acting as the resident
manager for a licensed real estate broker managing an apartment building, duplex, apartment complex or court,
when such resident manager resides on the premises and is engaged in the leasing of property in connection with
the employment of the resident manager;
5. Apply to any person who engages in such activity on behalf of a corporation or governmental body, to
acquire easements, rights-of-way, leases, permits and licenses, including any and all amendments thereto, and
other similar interests in real estate, for the purpose of, or facilities related to, transportation, communication
services, cable lines, utilities, pipelines, or oil, gas, and petroleum products;
6. Apply to any person who engages in such activity in connection with the acquisition of real estate on behalf
of an entity, public or private, which has the right to acquire the real estate by eminent domain; or
7. Apply to any person who is a resident of an apartment building, duplex, or apartment complex or court, when
the person receives a resident referral fee. As used in this paragraph, a “resident referral fee” means a nominal
fee not to exceed One Hundred Dollars ($100.00), offered to a resident for the act of recommending the property
for lease to a family member, friend, or coworker; or
8. Apply to any person or entity managing a transient lodging facility. For purposes of this paragraph, “transient
lodging facility” means a furnished room or furnished suite of rooms which is rented to a person on a daily basis,
not as a principal residence, for a period less than thirty (30) days; or
9. Apply to employees of a licensed real estate broker who lease residential housing units only to eligible per-sons
who qualify through a state or federal housing subsidized program to lease the property in an affordable
housing development project. “Affordable housing development project” means a housing development of four
or more units constructed for lease to specifically eligible persons as required by the particular federal or state
housing program, including, but not limited to, the U.S. Department of Housing and Urban Development, the
U.S. Department Agriculture Rural Development, the U.S. Department of Treasury Internal Revenue Service,
or the Oklahoma Housing Finance Agency.
5
OKlAHOmA ReAl eStAte lICenSe CODe
title 59, Oklahoma Statutes of 1974
Section 858-101 through 858-605
As Amended
through July 1, 2011
GeneRAl pROVISIOnS
§858-101. title and construction. This Code shall be known and cited as “The Oklahoma Real Estate
License Code.”
§858-102. Definitions. When used in this Code, unless the context clearly indicates otherwise, the following
words and terms shall be construed as having the meanings ascribed to them in this section:
1. The term “real estate” shall include any interest or estate in real property, within or without the State
of Oklahoma, whether vested, contingent or future, corporeal or incorporeal, freehold or nonfreehold, and
including leaseholds, options and unit ownership estates to include condominiums, time-shared ownerships and
cooperatives; provided, however, that the term “real estate” shall not include oil, gas or other mineral interests,
or oil, gas or other mineral leases; and provided further, that the provisions of this Code shall not apply to any
oil, gas, or mineral interest or lease or the sale, purchase or exchange thereof;
2. The term “real estate broker” shall include any person, partnership, association or corporation, foreign or
domestic, who for a fee, commission or other valuable consideration, or who with the intention or expectation
of receiving or collecting a fee, commission or other valuable consideration, lists, sells or offers to sell, buys
or offers to buy, exchanges, rents or leases any real estate, or who negotiates or attempts to negotiate any such
activity, or solicits listings of places for rent or lease, or solicits for prospective tenants, purchasers or sellers, or
who advertises or holds himself out as engaged in such activities;
3. The term “broker associate” shall include any person who has qualified for a license as a broker and who
is employed or engaged by, associated as an independent contractor with, or on behalf of, a broker to do or deal
in any act, acts or transaction set out in the definition of a broker;
4. The term “real estate sales associate” shall include any person having a renewable license and employed
or engaged by, or associated as an independent contractor with, or on behalf of, a real estate broker to do or deal
in any act, acts or transactions set out in the definition of a real estate broker;
5. “Provisional sales associate” shall include any person who has been licensed after June 30, 1993,
employed or engaged by, or associated as an independent contractor with, or on behalf of, a real estate broker
to do or deal in any act, acts or transactions set out in the definition of a real estate broker and subject to an
additional forty-five-clock-hour postlicensing educational requirement to be completed within the twelve-month
license term. However, the Oklahoma Real Estate Commission shall promulgate rules for those persons called
into active military service for purposes of satisfying the postlicensing educational requirement. The license of
a provisional sales associate shall be nonrenewable unless the postlicensing requirement is satisfied prior to the
expiration date of the license. Further, the term sales associate and provisional sales associate shall be synony-mous
in meaning except where specific exceptions are addressed in the Oklahoma Real Estate License Code;
6. The term “successful completion shall include prelicense, postlicense, and distance education courses in
which an approved public or private school entity has examined the individual, to the satisfaction of the entity
and standards as established by the Commission, in relation to the course material presented during the offering.
7. The term “renewable license” shall refer to a sales associate who is a holder of such license or to a pro-visional
sales associate who has completed both the prelicense and postlicense educational requirements within
the required time period as stated in the Code;
8. The term “nonrenewable license” shall refer to a provisional sales associate who is the holder of such
license and who has not completed the postlicense educational requirement;
9. The term “surrendered license” shall refer to a real estate license which is surrendered, upon the request
of the licensee, due to a pending investigation or disciplinary proceedings;
10. The term “cancelled license” shall refer to a real estate license which is canceled, upon the request of the
licensee and approval of the Commission, due to a personal reason or conflict.
11. “Licensee” shall include any person who performs any act, acts or transactions set out in the definition
of a broker and licensed under the Oklahoma Real Estate License Code;
12. The word “Commission” shall mean the Oklahoma Real Estate Commission;
13. The word “person” shall include and mean every individual, partnership, association or corporation,
foreign or domestic;
14. Masculine words shall include the feminine and neuter, and the singular includes the plural; and
15. The word “associate” shall mean a broker associate, sales associate or provisional sales associate.
eStABlISHment OF COmmISSIOn
§858-201. Oklahoma Real estate Commission.
A. There is hereby re-created, to continue until July 1, 2013, in accordance with the provisions of the
Oklahoma Sunset Law, the Oklahoma Real Estate Commission, which shall consist of seven (7) members. The
Commission shall be the sole governmental entity, state, county or municipal, which shall have the authority to
regulate and issue real estate licenses in the State of Oklahoma.
B. All members of the Commission shall be citizens of the United States and shall have been residents of
the State of Oklahoma for at least three (3) years prior to their appointment.
C. Five members shall be licensed real estate brokers and shall have had at least five (5) years�� active
experience as real estate brokers prior to their appointment and be engaged full time in the real estate brokerage
business. One member shall be a lay person not in the real estate business, and one member shall be an active
representative of a school of real estate located within the State of Oklahoma and approved by the Oklahoma
Real Estate Commission.
D. No more than two members shall be ap pointed from the same congressional district according to the lat-est
congressional redistricting act. However, when congressional districts are redrawn, each member appointed
prior to July 1 of the year in which such modification becomes effective shall complete the current term of office
and appointments made after July 1 of the year in which such modification becomes effective shall be based
on the redrawn districts. No appointments may be made after July 1 of the year in which such modification
becomes effective if such appointment would result in more than two members serving from the same modified
district.
§858-202. Appointment; tenure; Vacancies; Removal.
A. Members of the Oklahoma Real Estate Commission shall be appointed by the Governor with the advice
and consent of the Senate.
B. Members of the commission shall serve until their terms expire. The terms of the Commission members
shall be for four (4) years and until their successors are appointed and qualified.
C. Each successor member and any vacancy which may occur in the membership of the Commission shall
be filled by appointment of the Governor with the advice and consent of the Senate.
D. The Governor may select appointees from a list of at least three qualified persons submitted by the
Oklahoma Association of Realtors, Incorporated.
E. Each person who shall have been appointed to fill a vacancy shall serve for the remainder of the term
for which the member whom he will succeed was appointed and until his successor, in turn, shall have been
appointed and shall have qualified.
F. Members of the Commission may be removed from office by the Governor for inefficiency, neglect of
duty or malfeasance in office in the manner provided by law for the removal of officers not subject to impeach-ment.
§858-203. Compensation of Commissioners. Each member of the Oklahoma Real Estate Commission
shall be entitled to receive travel expenses essential to performing the duties of his office, as pro vided in the
State Travel Reimbursement Act.
§858-204. Officers; employees; Bond required.
A. The members of the Commission, within thirty (30) days after their appointment, shall organize and
elect a Chairman and Vice Chairman. Annually thereafter the offices of Chairman and Vice Chairman shall be
attained through election by Commission members.
B. The Commission, as soon after the election of the Chairman and Vice Chairman as practicable, shall
employ a secretary-treasurer and such clerks and assistants as shall be deemed necessary to discharge the duties
imposed by the provisions of this Code, and shall determine their duties and fix their compensation subject to
the general laws of this state.
C. The Chairman of the Commission and in his absence the Vice Chairman, shall preside at all meetings of
the Commission and shall execute such duties as the Commission, by its rules, shall prescribe.
D. The secretary-treasurer shall keep a complete and permanent record of all proceedings of the Commission
and perform such other duties as the Commission shall prescribe.
§858-205. Revolving fund.
A. There is hereby created in the State Treasury a revolving fund for the Oklahoma Real Estate Commission,
to be designated the “Oklahoma Real Estate Commission Revolving Fund.” The fund shall consist of all mon-ies
received by the Oklahoma Real Estate Commission other than the Oklahoma Real Estate Education and
Recovery Fund fees or appropriated funds. The revolving fund shall be a continuing fund not subject to fiscal
year limitations and shall be under the control and management of the Oklahoma Real Estate Commission.
6
7
B. The Oklahoma Real Estate Commission may invest all or part of the monies of the fund in securities
offered through the “Oklahoma State Treasurer’s Cash Management Program”. Any interest or dividends accru-ing
from the securities and any monies generated at the time of redemption of the securities shall be deposited
in the General Operating Fund of the Oklahoma Real Estate Commission. All monies accruing to the credit
of the said fund are hereby appropriated and may be budgeted and expended by the Oklahoma Real Estate
Commission.
C. Expenditures from this fund shall be made pursuant to the purposes of this Code and without legislative
appropriation. Warrants for expenditures shall be drawn by the State Auditor based on claims signed by an
authorized employee or employees of the Oklahoma Real Estate Commission and approved for payment by the
director of State Finance.
D. The revolving fund shall be audited at least once each year by the State Auditor and Inspector.
§858-206. Suits; Service; Seals; Certified copies; location of office.
A. The Commission may sue and be sued in its official name, and service of summons upon the Secretary-
Treasurer of the Commission shall constitute lawful service upon the Commission.
B. The Commission shall have a seal which shall be affixed to all licenses, certified copies of records and
papers on file, and to such other instruments as the Commission may direct, and all courts shall take judicial
notice of such seal.
C. Copies of records and proceedings of the Commission and all papers on file in the office, certified under
the seal, shall be received as evidence in all courts of record.
D. The office of the Commission shall be at Oklahoma City, Oklahoma.
§858-207. Annual report of fees. The Commission shall at the close of each fiscal year file with the
Governor and State Auditor and Inspector a true and correct report of all fees charged, collected and received
during the previous fiscal year, and shall pay into the General Revenue Fund of the State Treasury ten percent
(10%) of the license fees collected and received during the fiscal year.
§858-208. powers and duties of the Commission. The Oklahoma Real Estate Commission shall have
the following powers and duties:
1. To promulgate rules, prescribe administrative fees by rule, and make orders as it may deem necessary or
expedient in the performance of its duties;
2. To administer examinations to persons who apply for the issuance of licenses;
3. To sell to other entities or governmental bodies, not limited to the State of Oklahoma, computer testing
and license applications to recover expended research and development costs;
4. To issue licenses in the form the Commission may prescribe to persons who have passed examinations
or who otherwise are entitled to such licenses;
5. To issue licenses to and regulate the activities of real estate brokers, provisional sales associates, sales
associates, branch offices, nonresidents, associations, corporations, and partnerships;
6. Upon showing good cause as provided for in The Oklahoma Real Estate License Code, to discipline
licensees, instructors and real estate school entities by:
a. reprimand,
b. probation for a specified period of time,
c. required education in addition to the educational requirements provided by Section 858-307.2 of
this title,
d. suspending real estate licenses and approvals for specified periods of time,
e. revoking real estate licenses and approvals,
f. imposing administrative fines pursuant to Section 858-402 this title, or
g. any combination of discipline as provided by subparagraphs a through f of this paragraph;
7. Upon showing good cause, to modify any sanction imposed pursuant to the provisions of this section and
to reinstate licenses;
8. To conduct, for cause disciplinary proceedings;
9. To prescribe penalties as it may deem proper to be assessed against licensees for the failure to pay the
license renewal fees as provided for in this Code;
10. To initiate the prosecution of any person who violates any of the provisions of this Code;
11. To approve instructors and organizations offering courses of study in real estate and to further require
them to meet standards to remain qualified as is necessary for the administration of this Code;
12. To contract with attorneys and other professionals to carry out the functions and purposes of this Code;
13. To apply for injunctions and restraining orders for violations of the Code or the rules of the Commission;
14. To create an Oklahoma Real Estate Contract Form Committee by rule that will be required to draft and
revise real estate purchase and/or lease contracts and any related addenda for voluntary use by real estate licensees.
15. To enter into contracts and agreements for the payment of food and other reasonable expenses as autho-rized
in the State Travel Reimbursement Act necessary to host, conduct, or participate in meetings or training
sessions as is reasonable for the administration of this Code; and
16. To conduct an annual performance review of the Executive Director and submit the report to the
Legislature; and
17. To enter into reciprocal agreements with other real estate licensing regulatory jurisdictions with equiva-lent
licensing, education and examination requirements.
§858-209. Compliance with the Administrative procedures Act.
A. In the exercise of all powers and the performance of all duties provided in this Code, the Commission
shall comply with the procedures provided in the Administrative Procedures Act. Appeals shall be taken as
provided in said act.
B. The Commission may designate and employ a hearing examiner or examiners who shall have the power
and authority to conduct such hearings in the name of the Commission at any time and place subject to the pro-visions
of this section and any applicable rules or orders of the Commission. No person shall serve as a hearing
examiner in any proceeding in which any party to the proceeding is, or at any time has been, a client of the
hearing examiner or of any firm, partnership or corporation with which the hearing examiner is, or at any time
has been, associated. No person who acts as a hearing examiner shall act as attorney for the Commission in any
court proceeding arising out of any hearing in which he acted as hearing examiner.
C. In any hearing before the Commission, the burden of proof shall be upon the moving party.
lICenSInG
§858-301. license required; exceptions. It shall be unlawful for any person to act as a real estate
licensee, or to hold himself or herself out as such, unless the person shall have been licensed to do so under
this Code. However, nothing in this section shall:
1. Prevent any person, partnership, trust, association or corporation, or the partners, officers or employees of
any partnership, trustees or beneficiaries of any trust, association or corporation, from acquiring real estate for its
own use, nor shall anything in this section prevent any person, partnership, trust, association or corporation, or
the partners, officers or employees of any person, partnership, trustees or beneficiaries of any trust, association
or corporation, as owner, lessor or lessee of real estate, from selling, renting, leasing, exchanging, or offering
to sell, rent, lease or exchange, any real estate so owned or leased, or from performing any acts with respect to
such real estate when such acts are performed in the regular course of, or as an incident to, the management,
ownership or sales of such real estate and the investment therein;
2. Apply to persons acting as the attorney-in-fact for the owner of any real estate authorizing the final con-summation
by performance of any contract for the sale, lease or exchange of such real estate;
3. In any way prohibit any attorney-at-law from performing the duties of the attorney as such, nor shall this
Code prohibit a receiver, trustee in bankruptcy, administrator, executor, or his or her attorney, from performing
his or her duties, or any person from performing any acts under the order of any court, or acting as a trustee
under the terms of any trust, will agreement or deed of trust;
4. Apply to any person acting as the resident manager for the owner or an employee acting as the resident
manager for a licensed real estate broker managing an apartment building, duplex, apartment complex or court,
when such resident manager resides on the premises and is engaged in the leasing of property in connection with
the employment of the resident manager;
5. Apply to any person who engages in such activity on behalf of a corporation or governmental body, to
acquire easements, rights-of-way, leases, permits and licenses, including any and all amendments thereto, and
other similar interests in real estate, for the purpose of, or facilities related to, transportation, communication
services, cable lines, utilities, pipelines, or oil, gas, and petroleum products;
6. Apply to any person who engages in such activity in connection with the acquisition of real estate on
behalf of an entity, public or private, which has the right to acquire the real estate by eminent domain;
7. Apply to any person who is a resident of an apartment building, duplex, or apartment complex or court,
when the person receives a resident referral fee. As used in this paragraph, a “resident referral fee” means a
nominal fee not to exceed One Hundred Dollars ($100.00), offered to a resident for the act of recommending
the property for lease to a family member, friend, or coworker; or
8. Apply to any person or entity managing a transient lodging facility. For purposes of this paragraph,
“transient lodging facility” means a furnished room or furnished suite of rooms which is rented to a person on
a daily basis, not as a principal residence, for a period less than thirty (30) days.
8
9
§858-301.1. eligibility for license—Applicants convicted of criminal offenses—time periods for dis-qualification—
procedure
A. Any applicant convicted of any crimes defined in Section 13.1 of Title 21 of the Oklahoma Statutes shall
not be eligible to obtain a real estate license within twenty (20) years of the completion of any criminal sentence,
including parole and probation.
B. Any applicant convicted of a felony involving forgery, embezzlement, obtaining money under false
pretense, extortion, conspiracy to defraud, fraud, or any other similar offense or offenses shall not be eligible
to obtain a real estate license within ten (10) years of the completion of any criminal sentence, including parole
and probation.
C. Any applicant convicted of any other felony shall not be allowed to obtain a real estate license within
five (5) years of the completion of any criminal sentence, including parole and probation.
D. For purposes of this section, the term “applicant” shall mean any person making an application for origi-nal
licensure as a provisional sales associate, sales associate, broker associate, or broker and shall not apply to
any licensee seeking renewal of a current license.
E. Any applicant with a felony conviction shall not automatically receive a license after the timelines set
forth in this section, but may be licensed in accordance with the licensing provisions set forth in the Oklahoma
Real Estate License Code and Rules.
§858-301.2. notification of Commission of conviction or plea of guilty or nolo contendere to felony
offense
Every licensed person pursuant to the provisions of the Oklahoma Real Estate License Code shall notify the
Commission in writing of the conviction or plea of guilty or nolo contendere to any felony offense within thirty
(30) days after the plea is taken and also within thirty (30) days of the entering of an order of judgment and
sentencing.
§858-302. eligibility for license as real estate provisional sales associate—Qualifications—
examination.
A. Any person of good moral character, eighteen (18) years of age or older, and who shall submit to the
Commission evidence of successful completion of ninety (90) clock hours or its equivalent as determined by
the Commission of basic real estate instruction in a course of study approved by the Commission, may apply to
the Commission to take an examination for the purpose of securing a license as a provisional sales associate.
B. Application shall be made upon forms prescribed by the Commission and shall be accompanied by an
examination fee as provided for in this Code and all information and documents the Commission may require.
C. The applicant shall appear in person before the Commission for an examination which shall be in the
form and inquire into the subjects the Commission shall prescribe.
D. If it shall be determined that the applicant shall have passed the examination, received final approval of the
application, and paid the appropriate license fee provided for in this Code along with the Oklahoma Real Estate
Education and Recovery Fund fee, the Commission shall issue to the applicant a provisional sales associate license.
E. Following the issuance of a provisional sales associate license, the licensee shall then submit to the
Commission, prior to the expiration of the provisional license, evidence of successful completion of forty-five
(45) clock hours or its equivalent as determined by the Commission of posteducation real estate instruction in a
course(s) of study approved by the Commission. A provisional sales associate who fails to submit evidence of
compliance with the posteducation requirement pursuant to this section, prior to the first expiration date of the
provisional sales associate license, shall not be entitled to renew such license for another license term. However,
the Commission shall promulgate rules for those persons called into active military service for purposes of sat-isfying
the posteducation requirement.
§858-303. eligibility for license as real estate broker or broker associate—Qualifications—
examination.
A. Any person of good moral character who holds a renewable sales associate license and who shall have
had two (2) years’ experience, within the previous five (5) years, as a licensed real estate sales associate or
provisional sales associate, or its equivalent, and who shall submit to the Commission evidence of successful
completion of ninety (90) clock hours or its equivalent as determined by the Commission of advanced real
estate instruction in a course of study approved by the Commission, which instruction shall be in addition to
any instruction required for securing a license as a real estate sales associate may apply to the Commission, to
take an examination for the purpose of securing a license as a real estate broker or broker associate.
B. Application shall be made upon forms prescribed by the Commission and shall be accompanied by an
examination fee as provided for in this Code and all information and documents the Commission may require.
C. The applicant shall appear in person before the Commission for an examination which shall be in the
form and shall inquire into the subjects which the Commission shall prescribe.
D. If it shall be determined that the applicant shall have passed the examination, received final approval of
the application, and paid the appropriate license fee provided for in this Code along with the Oklahoma Real
Estate Education and Recovery Fund fee, the Commission shall issue to the applicant a broker or broker associ-ate
license.
§858-303B. Accounting of expenditure for services. Any real estate broker who charges and collects
any fees in advance of the services provided by the broker shall provide a detailed accounting of expenditures
to the person such services are performed for within ten (10) days after the time specified to perform such
services or upon written request from person for whom services are performed for, but no longer than one (1)
year from date of contract for such services.
§858-304. Certified transcript from accredited institution as evidence of successful completion of
basic or advanced real estate instruction to meet eligibility for license—Courses to be taught in real
estate schools.
A. A certified transcript from an institution of higher education, accredited by the Oklahoma State Regents
for Higher Education or the corresponding accrediting agency of another state, certifying to the successful
completion of a six-academic-hour basic course of real estate instruction for which college credit was given,
shall be prima facie evidence of successful completion of the clock hours of basic real estate instruction for a
provisional sales associate applicant as required in Section 858-302 of this Code.
B. A certified transcript from an institution of higher education, accredited by the Oklahoma State Regents
for Higher Education or the corresponding accrediting agency of another state, certifying to the successful
completion of a three-academic-hour course of real estate instruction consisting of the provisional sales associ-ate
postlicensing educational requirements for which college credit was given, shall be prima facie evidence of
successful completion of the clock hours of real estate instruction for the postlicense requirement as required in
Section 858-302 of this title.
C. A certified transcript from an institution of higher education, accredited by the Oklahoma State Regents
for Higher Education or the corresponding agency of another state, certifying to the successful completion of a
six-academic-hours advanced course of real estate instruction for which college credit was given, shall be prima
facie evidence of successful completion of the clock hours of advanced real estate instruction as required in
Section 858-303 of this Code for a broker applicant.
D. Each school, whether public or private other than institutions of higher education, must present to the
Commission its syllabus of instruction, prior to the approval of such school.
§858-305. licensing of associations, Corporations and partnerships.
A. The Oklahoma Real Estate Commission may license as a real estate broker any association or corpora-tion
in which the managing member or managing officer holds a license as a real estate broker, as defined in
this Code, and in which every member, officer or employee who acts as a real estate broker or real estate sales
associate holds a license for that purpose, as defined in this Code. The Commission may license as a real estate
broker any partnership in which each partner holds a license as a real estate broker, as defined in this Code.
B. Application for licenses described in this section shall be made on forms prescribed by the Commission
and shall be issued pursuant to rules promulgated by the Commission.
§858-306. licensing of nonresidents.
A. Any person who desires to perform licensed activities in Oklahoma but maintains a place of business
outside Oklahoma may obtain an Oklahoma nonresident license by complying with all applicable provisions of
this Code including the successful completion of the applicable Oklahoma state portion of the real estate examina-tion.
B. The nonresident shall give written consent that actions and suits at law may be commenced against the
nonresident licensee in any county in this state wherein any cause of action may arise or be claimed to have
arisen out of any transaction occurring in the county because of any transactions commenced or con ducted by
the nonresident or the nonresident’s associates or employees in such county. The nonresident shall further, in
writing, appoint the secretary-treasurer of said Commission as service agent to receive service of summons for
the nonresident in all of such actions and service upon the secretary-treasurer of such Commission shall be held
to be sufficient to give the court jurisdiction over the nonresident in all such actions.
C. A broker who is duly licensed in another state and who has not obtained an Oklahoma nonresident license
may enter a cooperative brokerage agreement with a licensed real estate broker in this state. If, however, the bro-ker
desires to perform licensed activities in this state, the broker must obtain an Oklahoma nonresident license.
§858-307.1. Issuance of license—term—Fees.
A. The Oklahoma Real Estate Commission shall issue every real estate license for a term of thirty-six (36)
months with the exception of a provisional sales associate license whose license term shall be for twelve (12)
months. License terms shall not be altered except for the purpose of general reassignment of the terms which
might be necessitated for maintaining an equitable staggered license term system. The expiration date of the
10
11
license shall be the end of the twelfth or thirty-sixth month, whichever is applicable, including the month of
issuance. Fees shall be promulgated by rule, payable in advance, and nonrefundable.
B. If a license is issued for a period of less than thirty-six (36) months, the license fee shall be prorated to
the nearest dollar and month. If a real estate sales associate or a provisional sales associate shall qualify for a
license as a real estate broker, then the real estate provisional sales associate’s or sales associate’s license fee for
the remainder of the license term shall be prorated to the nearest dollar and month and credited to such person’s
real estate broker’s license fee.
§858-307.2. Renewal of license—Continuing education requirement.
A. Beginning July 1, 2004, as a condition of renewal or reactivation of the license, each licensee with the
exception of those exempt as set out in this section shall submit to the Commission evidence of completion of
a specified number of hours of continuing education courses approved by the Commission, within the thirty-six
(36) months immediately preceding the term for which the license is to be issued. The number of hours, or its
equivalent, required for each licensed term shall be determined by the Commission and promulgated by rule.
Each licensee shall be required to complete and include as part of said continuing education a certain number
of required subjects as prescribed by rule.
B. The continuing education courses required by this section shall be satisfied by courses approved by the
Commission and offered by:
1. The Commission;
2. An area vocational-technical school;
3. A college or university;
4. A private school;
5. The Oklahoma Association of Realtors, the National Association of Realtors, or any
affiliate thereof;
6. The Oklahoma Bar Association, American Bar Association, or any affiliate thereof; or
7. An education provider.
C. The Commission shall maintain a list of courses which are approved by the Commission.
D. The Commission shall not issue an active renewal license or reactivate a license unless the continuing
education requirement set forth in this section is satisfied within the prescribed time period.
E. The provisions of this section do not apply:
1. During the period a license is on inactive status;
2. To a licensee who holds a provisional sales associate license;
3. To a nonresident licensee licensed in this state if the licensee maintains a current license in another
state and has satisfied the continuing education requirement for license renewal in that state; or
4. To a corporation, association partnership or branch office.
§858-307.3. Application for reissuance of license after revocation. A person shall not be permitted
to file an application for reissuance of a license after revocation of the license within three (3) years of the
effective date of revocation.
§858-307.4. Criminal history record — Investigation - Costs
A. Prior to the issuance of a license pursuant to this Code, each applicant shall submit to a national criminal
history record check, as defined by section 150.9 of Title 74 of the Oklahoma Statutes.
B. Upon receipt by the Commission of criminal history, the Commission shall conduct an investigation in
accordance with rules promulgated by the Commission.
C. The costs associated with the national criminal history record check shall be paid by the applicant.
§858-308. Current list of licensees. In the interest of the public, the Commission shall keep a current list
of the names and addresses of all licensees, and of all persons whose licenses have been sus pended or revoked,
together with such information relative to the enforcement of the provisions of this Code as it may deem advis-able
and desirable. Such listings and information shall be a matter of public record.
§858-309. Inactive status for licensees.
A. The Commission may place a license on inactive status when the request therefor is accompanied by
sufficient reason; however, such status shall not relieve the licensee from paying the required fees. The request
for inactive status shall be in writing, on forms furnished by the Commission.
B. During active military service, any licensee shall not be required to pay the fees but shall request the
inactive status prior to each term for which the license is to be issued.
§858-310. location of office; licenses for branch offices.
A. A real estate broker shall maintain a specific place of business. Such place of business shall comply with
all local laws and shall be available to the public during reasonable business hours.
B. If a real estate broker maintains more than one place of business and the additional location is an exten-sion
of the main office, a branch office license must be obtained for each additional location. Each branch office
shall be under the direction and supervision of a separate broker and shall be considered a managing broker of
the branch office. Application shall be made upon forms as prescribed by the Commission.
§858-311. Action not maintainable without allegation and proof of license. No person, partnership,
association or corporation acting as a real estate licensee shall bring or maintain an action in any court in this
state for the recovery of a money judgment as compensation for services rendered in listing, buying, selling,
renting, leasing or exchanging of any real estate without alleging and proving that such person, partnership,
association or corporation was licensed when the alleged cause of action arose.
§858-312. Investigations—Cause for suspension or revocation of license. The Oklahoma Real Estate
Commission may, upon its own motion, and shall, upon written complaint filed by any person, investigate
the business transactions of any real estate licensee, and may, upon showing good cause, impose sanctions as
provided for in Section 858-208 of this title. Cause shall be established upon the showing that any licensee
has performed, is performing, has attempted to perform, or is attempting to perform any of the following acts:
1. Making a materially false or fraudulent statement in an application for a license;
2. Making substantial misrepresentations or false promises in the conduct of business, or through real estate
licensees, or advertising, which are intended to influence, persuade, or induce others;
3. Failing to comply with the requirements of Sections 858-351 through 858-363 of this title;
4. Accepting a commission or other valuable consideration as a real estate associate for the performance of
any acts as an associate, except from the real estate broker with whom the associate is associated;
5. Representing or attempting to represent a real estate broker other than the broker with whom the associate
is associated without the express knowledge and consent of the broker with whom the associate is associated;
6. Failing, within reasonable time, to account for or to remit any monies, documents, or other property com-ing
into possession of the licensee which belong to others;
7. Paying a commission or valuable consideration to any person for acts or services performed in violation
of the Oklahoma Real Estate License Code;
8. Any other conduct which constitutes untrustworthy, improper, fraudulent, or dishonest dealings;
9. Disregard or violating any provision of the Oklahoma Real Estate License Code or rules promulgated by
the Commission;
10. Guaranteeing or having authorized or permitted any real estate licensee to guarantee future profits
which may result from the resale of real estate;
11. Advertising or offering for sale, rent or lease any real estate, or placing a sign on any real estate offering
it for sale, rent or lease without the consent of the owner or the owner’s authorized representative;
12. Soliciting, selling, or offering for sale real estate by offering “free lots,” conducting lotteries or contests,
or offering prizes for the purpose of influencing a purchaser or prospective purchaser of real estate;
13. Accepting employment or compensation for appraising real estate contingent upon the reporting of a
predetermined value or issuing any appraisal report on real estate in which the licensee has an interest unless
the licensee’s interest is disclosed in the report. All appraisals shall be in compliance with the Oklahoma real
estate appraisal law, and the person performing the appraisal or report shall disclose to the employer whether the
person performing the appraisal or report is licensed or certified by the Oklahoma Real Estate Appraiser Board;
14. Paying a commission or any other valuable consideration to any person for performing the services of a
real estate licensee as defined in the Oklahoma Real Estate License Code who has not first secured a real estate
license pursuant to the Oklahoma Real Estate License Code;
15. Unworthiness to act as a real estate licensee, whether of the same or of a different character as specified
in this section, or because the real estate licensee has been convicted of, or pleaded guilty or nolo contendere to,
a crime involving moral turpitude;
16. Commingling with the licensee’s own money or property the money or property of others which is
received and held by the licensee, unless the money or property of others is received by the licensee and held in
an escrow account that contains only money or property of others;
17. Conviction in a court of competent jurisdiction of having violated any provision of the federal fair hous-ing
laws, 42 U.S.C. Section 3601 et seq.;
18. Failure by a real estate broker, after the receipt of a commission, to render an accounting to and pay to a
real estate licensee the licensee’s earned share of the commission received;
19. Conviction in a court of competent jurisdiction in this or any other state of the crime of forgery, embez-zlement,
obtaining money under false pretenses, extortion, conspiracy to defraud, fraud, or any similar offense
or offenses, or pleading guilty or nolo contendere to any such offense or offenses;
12
13
20. Advertising to buy, sell, rent, or exchange any real estate without disclosing that the licensee is a real
estate licensee;
21. Paying any part of a fee, commission, or other valuable consideration received by a real estate licensee
to any person not licensed;
22. Offering, loaning, paying, or making to appear to have been paid, a down payment or earnest money
deposit for a purchaser or seller in connection with the real estate transaction; and
23. Violation of the Residential Property Condition Disclosure Act.
§858-312.1. Certain persons prohibited from participation in real estate business.
A. No person whose license is revoked or suspended shall operate directly or indirectly or have a partici-pating
interest, or act as a member, partner or officer, in any real estate business, corporation, association or
partnership that is required to be licensed pursuant to this Code.
B. No person whose license is cancelled, surrendered or lapsed pending investigation or disciplinary pro-ceedings
shall operate directly or indirectly or have a participating interest, or act as a member, partner or officer,
in any real estate business, corporation, association or partnership that is required to be licensed pursuant to this
Code until such time as the Commission makes a determination on the pending investigation or disciplinary
proceedings and approves an application for license.
§858-313 Confidential materials of the Commission The following materials of the Commission are
confidential and not public records:
1. Examinations conducted by the Commission and materials related to the examinations; and
2. Educational materials submitted to the Commission by a person or entity seeking approval and/or accep-tance
of a course of study.
BROKeR RelAtIOnSHIpS
§858-351. Definitions. Unless the context clearly indicates otherwise, as used in Section 858-351 through
858-363 of this title:
1. “Broker” means a real estate broker as defined in Section 858-102 of this title, and means, further, except
where the context refers only to a real estate broker, an associated broker associate, sales associate, or provi-sional
sales associate authorized by a real estate broker to provide brokerage services;
2. “Party” means a person who is a seller, buyer, landlord, or tenant or a person who is involved in an option
or exchange;
3. “Single-party broker” means a broker who has entered into a written brokerage agreement with a party
in a transaction to provide services for the benefit of that party;
4. “Transaction” means any or all of the steps that may occur by or between parties when a party seeks
to buy, sell, lease, rent, option or exchange real estate and at least one party enters into a broker relationship
subject to this title. Such steps may include, without limitation, soliciting, advertising, engaging a broker to list
a property, showing or viewing a property, making offers or counteroffers, entering into agreements and closing
such agreements; and
5. “Transaction broker” means a broker who provides services by assisting a party in a transaction without
being an advocate for the benefit of that party.
§858-352. Written brokerage agreement. A broker may enter into a written brokerage agreement to
provide services as either a single-party broker or a transaction broker. If a broker does not enter into a
written brokerage agreement with a party, the broker shall perform services only as a transaction broker. All
brokerage agreements shall be deemed to incorporate as material terms the duties and responsibilities set forth
in subsection A of Section 858-353 or subsection B of Section 858-354 of this title, based upon whether the
relationship established by the brokerage agreement is a transaction broker relationship or single-party broker
relationship.
§858-353. transaction broker—Duties and responsibilities.
A. A transaction broker shall have the following duties and responsibilities, which are mandatory and may
not be abrogated or waived by a transaction broker:
1. To treat all parties with honesty and exercise reasonable skill and care;
2. To be available to:
a. receive all written offers and counteroffers,
b. reduce offers or counteroffers to a written form upon request of any party to a transaction, and
c. present timely such written offers and counteroffers,
3. To inform in writing the party for whom the broker is providing services when an offer is made that the
party will be expected to pay certain closing costs, brokerage service costs and approximate amount of said
costs;
4. To account timely for all money and property received by the broker,
5. To keep confidential information received from a party confidential as required by Section 858-357 of
this title;
6. To disclose information pertaining to the property as required by the Residential Property Condition
Disclosure Act; and
7. To comply with all requirements of the Oklahoma Real Estate License Code and all applicable statutes
and rules.
B. Except as provided in Section 858-358 of this title, such duties and responsibilities set forth in this section
shall be performed by a transaction broker if such duties and responsibilities relate to the steps of the transaction
which occur while there is a broker relationship.
C. Nothing in this section requires or prohibits a transaction broker from charging a separate fee or other
compensation for each duty or other services provided during a transaction.
D. If a transaction broker intends to perform fewer services than those required to complete a transaction,
written disclosure shall be provided to the party for whom the broker is providing services. Such disclosure shall
include a description of those steps in the transaction for which the broker will not perform services, and also
state that a broker assisting the other party in the transaction is not required to provide assistance with these steps
in any manner.
§858-354. Single-party broker—Duties and responsibilities.
A. A broker shall enter into a written brokerage agreement prior to providing services as a single-party broker,
which shall be deemed to include, and which may not abrogate or waive, the mandatory duties and responsibili-ties
set forth in this section.
B. The single-party broker shall have the following duties and responsibilities:
1. To treat all parties with honesty and exercise reasonable skill and care;
2. To be available to:
a. receive all written offers and counteroffers,
b. reduce offers or counteroffers to a written form upon request of any party to a transaction,
c. present timely all written offers and counteroffers;
3. To inform in writing the party for whom the broker is providing services when an offer is made that the
party will be expected to pay certain closing costs, brokerage service costs and approximate amount of said
costs;
4. To keep the party for whom the single-party broker is performing services informed regarding the trans-action;
5. To account timely for all money and property received by the broker;
6. To keep confidential information received from a party confidential as required by Section 858-357 of
this title;
7. To perform all brokerage activities for the benefit of the party for whom the single-party broker
is performing services unless prohibited by law;
8. To disclose information pertaining to the property as required by the Residential Property
Condition Disclosure Act;
9. To obey the specific directions of the party for whom the single-party broker is performing services that
are not contrary to applicable statutes and rules or contrary to the terms of a contract between the parties to the
transaction; and
10. To comply with all requirements of the Oklahoma Real Estate License Code and all applicable statutes
and rules.
C. In the event a broker who is a single-party broker for a buyer or a tenant receives a fee or compensation
based on a selling price or lease cost of a transaction, such receipt does not constitute a breach of duty or obliga-tion
to the buyer or tenant if fully disclosed to the buyer or tenant in the written brokerage agreement.
D. Except as provided in Section 858-358 of this title, such duties and responsibilities set forth in this section
shall be performed by a single-party broker if such duties and responsibilities relate to the steps of the transaction
which occur while there is a broker relationship.
E. Nothing in this section requires or prohibits a single-party broker from charging a separate fee or other
compensation for each duty or other services provided during a transaction.
F. If a single-party broker intends to perform fewer services than those required to complete a transaction,
written disclosure shall be provided to the party for whom the broker is providing services. Such disclosure shall
include a description of those steps in the transaction for which the broker will not perform services, and also
state that the broker assisting the other party in the transaction is not required to provide assistance with these
steps in any manner.
14
15
§858-355. Alternative relationships entered into where broker assists one or both parties—Written
disclosure—Written consent—Contents of brokerage agreement—Withdrawal by broker—Referral
fees—Cooperation with other brokers.
A. When assisting one party to a transaction, a broker shall enter into one of the following relationships:
1. As a transaction broker without a written brokerage agreement;
2. As a transaction broker through a written brokerage agreement; or
3. As a single-party broker through a written brokerage agreement.
B. When assisting both parties to a transaction, a broker may enter into the following relationships:
1. As a transaction broker for both parties;
2. As a single-party broker for one party and as a transaction broker for the other party. In this event, a
broker shall disclose in writing to the party for whom the broker is providing services as a transaction broker,
the difference between a transaction broker and a single-party broker, and that the broker is a single-party broker
for the other party and performs services for the benefit of the other party in the transaction; or
3. As a transaction broker where the broker has previously entered into a written brokerage agreement
to provide services as a single-party broker for both parties. In this event, the broker shall obtain the written
consent of each party before the broker begins to perform services as a transaction broker. The written consent
may be included in the written brokerage agreement or in a separate document and shall contain the following
information:
a. a description of the transaction or type of transactions that might occur in which the single-party
broker seeks to obtain consent to become a transaction broker,
b. a statement that in such transactions the single-party broker would perform services for more than
one party whose interest could be different or even adverse and that such transactions require the broker
to seek the consent of each party to such transactions to permit a change in the brokerage relationship,
c. a statement that by giving consent in such transactions:
(1) the party will allow the broker to change the broker’s relationship from performing services as a
single-party broker to performing services as a transaction broker,
(2) the broker will no longer provide services for the benefit of the party, but may only assist in such
transactions,
(3) the broker will not be obligated to obey the specific directions of the party but will assist all parties
to such transactions,
(4) the party will not be vicariously liable for the acts of the broker and associated associates, and
(5) the broker’s obligation to keep confidential information received from the party confidential is not
affected,
d. a statement that the party is not required to consent to the change in the brokerage relationships in
such transactions and may seek independent advice,
e. a statement that the consent of the party to change the brokerage relationship in such transactions has
been given voluntarily and that the written consent has been read and understood by the party, and
f. a statement that the party authorizes the broker to change the brokerage relationship in such transac-tions
and to assist all parties to such transactions as a transaction broker.
C. 1. If neither party gives consent as described in paragraph 3 of subsection B of this section, the broker
shall withdraw from providing services to all but one party to a transaction. If the broker refers the party for
whom the broker is no longer providing services to another broker, the broker shall not receive a fee for referring
the party unless written disclosure is made to all parties.
2. If only one party gives consent as described in paragraph 3 of subsection B of this section, the broker may
act as a transaction broker for the consenting party and continue to act as a single-party broker for the noncon-senting
party. In this event, the broker shall disclose in writing to the consenting party that the broker remains a
single-party broker for the nonconsenting party and performs services for the benefit of the nonconsenting party.
D. A broker may cooperate with other brokers in a transaction. Under Sections 858-351 through 858-363
of this act, a broker shall not be an agent, subagent, or dual agent and an offer of subagency shall not be made
to other brokers.
§858-356. Disclosures—Confirmation in writing.
A. Prior to the signing by a party of a contract to purchase, lease, option or exchange real estate, a broker
who is performing services as a transaction broker without a written brokerage agreement shall describe and
disclose in writing the broker’s role to the party.
B. Prior to entering into a written brokerage agreement as either a transaction broker or single-party broker,
the broker shall describe and disclose in writing the broker’s relationship to the party.
C. A transaction broker shall disclose to the party for whom the transaction broker is providing services that
the party is not vicariously liable for the acts or omissions of the transaction broker.
D. A single-party broker shall disclose to the party for whom the single-party broker is providing services
that the party may be vicariously liable for the acts or omissions of a single-party broker.
E. The disclosure required by this section and the consent required by Section 858-355 of this act must
be confirmed by each party in writing in a separate provision, incorporated in or attached to the contract to
purchase, lease, option, or exchange real estate. In those cases where a broker is involved in a transaction but
does not prepare the contract to purchase, lease, option, or exchange real estate, compliance with the disclosure
requirements must be documented by the broker.
§858-357. Confidential information. The following information shall be considered confidential and
shall not be disclosed by a broker without the consent of the party disclosing the information unless consent
to disclosure is granted by the party disclosing the information, the disclosure is required by law, or the
information is made public or becomes public as the result of actions from a source other than the broker:
1. That a party is willing to pay more or accept less than what is being offered;
2. That a party is willing to agree to financing terms that are different from those offered; and
3. The motivating factors of the party purchasing, selling, leasing, optioning, or exchanging the property.
§858-358. Duties of broker following termination, expiration, or completion of performance.
Except as may be provided in a written brokerage agreement between the broker and a party to a transaction,
the broker owes no further duties or responsibilities to the party after termination, expiration, or completion
of performance of the transaction, except:
1. To account for all monies and property relating to the transaction; and
2. To keep confidential all confidential information received by the broker during the broker’s relationship
with a party.
§858-359. payment to broker not determinative of relationship. The payment or promise of payment
or compensation by a party to a broker does not determine what relationship, if any, has been established
between the broker and a party to a transaction.
§858-360. Abrogation of common law principles of agency—Remedies cumulative. The duties
and responsibilities of a broker specified in Sections 858-351 through 858-363 of this act shall replace and
abrogate the fiduciary or other duties of a broker to a party based on common law principles of agency. The
remedies at law and equity supplement the provisions of Sections 858-351 through 858-363 of this act.
§858-361. use of word “agent” in trade name and as general reference. A real estate broker and the
associates of a real estate broker are permitted under the provisions of Sections 858-351 through 858-363 of
this title to use the word “agent” in a trade name and as a general reference for designating themselves as real
estate licensees.
§858-362. Vicarious liability for acts or omissions of real estate licensee. A party to a real estate transac-tion
shall not be vicariously liable for the acts or omissions of a real estate licensee who is providing services as
a transaction broker under Section 858-351 through 858-363 of this act.
§858-363. Associates of real estate broker—Authority. Each broker associate, sales associate, and provi-sional
sales associate shall be associated with a real estate broker. A real estate broker may authorize associates
to provide brokerage services in the name of the real estate broker as permitted under the Oklahoma Real Estate
License Code, which may include the execution of written agreements; however, such associates shall not refer
to themselves as a broker.
penAltIeS
§858-401. punishment for violations.
A. In addition to any other penalties provided by law, any person unlicensed pursuant to The Oklahoma Real
Estate License Code who shall willingly and knowingly violate any provision of this Code, upon conviction,
shall be guilty of a misdemeanor punishable by a fine of not more than One Thousand Dollars ($1,000.00), or
by imprisonment in the county jail for not more than six (6) months, or by both such fine and imprisonment.
B. In addition to any civil or criminal actions authorized by law, whenever, in the judgment of the Oklahoma
Real Estate Commission, any unlicensed person has engaged in any acts or practices which constitute a violation
of the Oklahoma Real Estate License Code, the Commission may:
1. After notice and hearing, and upon finding a violation of the Code, impose a fine of not more than Five
Thousand Dollars ($5,000.00) or the amount of the commission or commissions earned, whichever is greater
for each violation of the Code for unlicensed activity;
2. Make application to the appropriate court for an order enjoining such acts or practices, and upon a show-ing
by the Commission that such person has engaged in any such acts or practices, an injunction, restraining
order, or such other order as may be appropriate shall be granted by such court, without bond; or
3. Impose administrative fines pursuant to this subsection which shall be enforceable in the district courts
of this state.
16
17
C. Notices and hearings required by this section and any appeals from orders entered pursuant to this section
shall be in accordance with Administrative Procedures Act.
D. Such funds as collected pursuant to this section shall be deposited in the Oklahoma Real Estate Education
and Recovery Fund.
§858-402. Administrative Fines.
A. The Oklahoma Real Estate Commission may impose administrative fines on any licensee licensed pursu-ant
to The Oklahoma Real Estate License Code as follows:
1. Any administrative fine imposed as a result of a violation of this Code or the rules of the Commission
shall not:
a. be less than One Hundred Dollars ($100.00) and shall not exceed Two Thousand Dollars ($2,000.00)
for each violation of this Code or the rules of the Commission, or
b. exceed Five Thousand Dollars ($5,000.00) for all violations resulting from a single incident or trans-action;
2. All administrative fines shall be paid within thirty (30) days of notification of the licensee by the
Commission of the order of the Commission imposing the administrative fine;
3. The license may be suspended until any fine imposed upon the licensee by the Commission is paid;
4. If fines are not paid in full by the licensee within thirty (30) days of the notification by the Commission
of the order, the fines shall double and the licensee shall have an additional thirty-day period. If the doubled
fine is not paid within the additional thirty-day period, the license shall automatically be revoked; and
5. All monies received by the Commission as a result of the imposition of the administrative fine provided
for in this section shall be deposited in the Oklahoma Real Estate Education and Recovery Fund, created pursu-ant
to Section 858-601 of this title.
B. The administrative fines authorized by this section may be in addition to any other criminal penalties or
civil actions provided for by law.
mISCellAneOuS
§858-513. psychologically impacted real estate—Factors included—nondisclosure of facts—
Certain actions prohibited—Disclosure in certain circumstances.
A. The fact or suspicion that real estate might be or is psychologically impacted, such impact being the result
of facts or suspicions, including but not limited to:
1. that an occupant of the real estate is, or was at any time suspected to be infected, or has been infected,
with Human Immunodeficiency Virus or diagnosed with Acquired Immune Deficiency Syndrome, or other
disease which has been determined by medical evidence to be highly unlikely to be transmitted through the
occupancy of a dwelling place; or
2. that the real estate was, or was at any time suspected to have been the site of a suicide, homicide or other
felony,
is not a material fact that must be disclosed in a real estate transaction.
B. No cause of action shall arise against an owner of real estate or any licensee assisting the owner for the
failure to disclose to the purchaser or lessee of such real estate or any licensee assisting the purchaser or lessee
that such real estate was psychologically impacted as provided for in subsection A of this section.
C. Notwithstanding the fact that this information is not a material defect or fact, in the event that a purchaser
or lessee, who is in the process of making a bona fide offer, advises the licensee assisting the owner, in writing,
that knowledge of such factor is important to the person’s decision to purchase or lease the property, the licensee
shall make inquiry of the owner and report any findings to the purchaser or lessee with the consent of the owner
and subject to and consistent with applicable laws of privacy; provided further, if the owner refuses to disclose,
the licensee assisting the owner shall so advise the purchaser or lessee.
§858-514. Registered sex offenders or violent crime offenders—no duty to provide notice regarding.
The provisions of the Sex Offenders Registration Act and the Mary Rippy Violent Crime Offenders
Registration Act shall not be construed as imposing a duty upon a person licensed under the Oklahoma Real
Estate License Code to disclose any information regarding an offender required to register under such provision.
eDuCAtIOn AnD ReCOVeRY FunD
§858-601. Creation—Status—Appropriation—expenditures—use of funds—eligibility to recover.
A. There is hereby created in the State Treasury a revolving fund for the Oklahoma Real Estate Commission
to be designated “Oklahoma Real Estate Education and Recovery Fund.” The fund shall consist of monies
received by the Oklahoma Real Estate Commission as fees assessed for the Oklahoma Real Estate Education
and Recovery Fund under the provisions of this act. The revolving fund shall be a continuing fund not subject to
fiscal year limitations and shall be under the administrative direction of the Oklahoma Real Estate Commission.
The Oklahoma Real Estate Commission may invest all or part of the monies of the fund in securities offered
through the “Oklahoma State Treasurer’s Cash Management Program.” Any interest or dividends accruing from
the securities and any monies generated at the time of redemption of the securities shall be deposited in the
Oklahoma Real Estate Education and Recovery Fund. All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Oklahoma Real Estate Commission for the purposes
specified in Section 858-605 of this title. Expenditures from said fund shall be made pursuant to the laws of
this state and the statutes relating to the said Commission, and without legislative appropriation. Warrants for
expenditures from said fund shall be drawn by the State Treasurer, based on claims signed by an authorized
employee or employees of the said Commission and approved for payment by the Director of State Finance.
B. Monies in the fund shall be used to reimburse any claimant who has been awarded a judgment, subject
to subsection C of this section, by a court of competent jurisdiction to have suffered monetary damages by an
Oklahoma real estate licensee in any transaction for which a license is required under the Oklahoma Real Estate
License Code because of an act constituting a violation of the Oklahoma Real Estate License Code.
C. In determining a claimant’s eligibility to recover from the fund, the Commission may conduct an inde-pendent
review of the merits, findings and damages involved in the underlying action and may conduct an
evidentiary hearing to determine if a claim is eligible for recovery from the fund and the amount of damages
awarded are due to an act constituting a violation of the Oklahoma Real Estate License Code.
§858-602. Additional Fee—Disposition.
A. An additional, nonrefundable fee as promulgated by rule by the Commission shall be added to and pay-able
with the license fee for both new licenses and renewals of licenses for each licensee as provided in Section
858-307.1 of this title. Such additional fee shall be deposited in the Oklahoma Real Estate Education and
Recovery Fund.
B. If a license is issued for a period of less than thirty-six (36) months, such additional fee shall be prorated
to the nearest dollar and month.
C. If a real estate sales associate or provisional sales associate shall qualify for a license as a real estate
broker, the additional fee for the remainder of the term shall be prorated to the nearest dollar and month and
credited to the additional fee added to the payable with the real estate broker license fee.
D. At the close of each fiscal year, the Commission shall transfer into the Oklahoma Real Estate Commission
Revolving Fund any money in excess of that amount required to be retained in the Oklahoma Real Estate
Education and Recovery Fund and that amount authorized to be expended as provided within this Code that is
remaining in the Oklahoma Education and Recovery Fund and unexpended.
§858-603. eligibility to recover from fund—Ineligibility.
A. Any claimant shall be eligible to seek recovery from the Oklahoma Real Estate Education and Recovery
Fund if the following conditions have been met:
1. An action has been filed in district court based upon a violation specified in the Oklahoma Real Estate
License Code;
2. The cause of action accrued not more than two (2) years prior to the filing of the action;
3. At the commencement of an action, the party filing the action shall immediately notify the Commission
to this effect in writing and provide the Commission with a file-stamped copy of the petition or affidavit. Said
Commission shall have the right to enter an appearance, intervene in, defend, or take any action it may deem
appropriate to protect the integrity of the Fund. The Commission may waive the notification requirement if it
determines that the public interest is best served by the waiver, that is to best meet the ends of justice and that
the claimant making application made a good faith effort to comply with the notification requirements;
4. Final judgment is received by the claimant upon such action;
5. The final judgment is enforced as provided by statute for enforcement of judgments in other civil actions
and that the amount realized was insufficient to satisfy the judgment; and
6. Any compensation recovered by the claimant from the judgment debtor, or from any other source for any
monetary loss arising out of the cause of action, has been applied to the judgement awarded by the court.
B. A claimant shall not be qualified to make a claim for recovery from the Oklahoma Real Estate Education
and Recovery Fund, if:
18
19
1. The claimant is the spouse of the judgment debtor or a personal representative of such spouse;
2. The claimant is a licensee who acted in their own behalf in the transaction which is the subject of the
claim; or
3. The claimant’s claim is based upon a real estate transaction in which the claimant is, through their own
action, jointly responsible for any resulting monetary loss with respect to the property owned or controlled by
the claimant.
§858-604. Application for payment—Amount—Assignment of rights, etc.—Insufficient funds—
Revocation of brokers license.
A. Any claimant who meets all of the conditions prescribed by this act may apply to the Commission for
payment from the Oklahoma Real Estate Education and Recovery Fund, in an amount equal to the unsatis-fied
portion of the claimant’s judgment, which is actual or compensatory damages, or Twenty-Five Thousand
Dollars ($25,000.00), whichever is less. The claimant is entitled to reimbursement for attorney fees reasonably
incurred in the litigation not to exceed twenty-five percent (25%) of the claimant’s amount approved by the
Commission. Attorney fees charged and received shall be documented, verified, and submitted with the claim.
Court costs and other expenses shall not be recoverable from the fund.
B. Upon receipt by the claimant of the payment from the Oklahoma Real Estate Education and Recovery
Fund, the claimant assigns the claimant’s right, title and interest in that portion of the judgment to the
Commission which shall be subrogated up to the amount actually paid by the fund to the claimant or to the
claimant and the claimant’s attorney. Upon suit to collect upon a judgment, the claimant shall have priority
over the fund. Any amount subsequently recovered on the judgment by the Commission, to the extent of the
Commission’s right, title and interest therein, shall be used to reimburse the Oklahoma Real Estate Education
and Recovery Fund.
C. Payments for claims arising out of the same transaction which constitutes a claimant’s cause of action
based upon a violation of the Oklahoma Real Estate License Code shall be limited in the aggregate of Fifty
Thousand Dollars ($50,000.00) irrespective of the number of claimants or parcels of real estate involved in the
transaction.
D. Payments for claims based upon judgments against any one licensee shall not exceed in the aggregate
Fifty Thousand Dollars ($50,000.00).
E. If at any time the monies in the Oklahoma Real Estate Education and Recovery Fund are insufficient to
satisfy any valid claim, or portion thereof, the Commission shall satisfy such unpaid claim or portion thereof
as soon as a sufficient amount of money has been deposited in the fund by collecting special levy from the
members of the fund of an amount not to exceed Five Dollars ($5.00) each fiscal year. If the additional levy
is not sufficient to pay all outstanding claims against the fund, the claims shall be paid as the money becomes
available. Where there is more than one claim outstanding, the claims shall be paid in the order that they were
approved.
F. Any claim against a corporation, association or partnership would be imputed to the managing broker(s)
at the time the cause of action arose.
G. The license of said licensee, shall be automatically revoked upon the payment of any amount from the
Oklahoma Real Estate Education and Recovery Fund on a judgment against a licensee. The license shall not be
considered for reinstatement until the licensee has repaid in full, plus interest at the rate of seven percent (7%)
a year, the amount paid from the Oklahoma Real Estate Education and Recovery Fund on the judgment against
the licensee.
§858-605. expenditure of funds.
At any time when the total amount of monies, deposited in the Oklahoma Real Estate Education and
Recovery Fund exceeds Two Hundred Fifty Thousand Dollars ($250,000.00), the Commission in its discretion
may expend such excess funds each fiscal year for the following purposes:
1. To promote the advancement of education in the field of real estate for the benefit of the general public
and those licensed under the Oklahoma Real Estate License Code, but such promotion shall not be construed to
allow advertising of this profession;
2. To underwrite educational seminars and other forms of educational projects for the benefit of real estate
licensees;
3. To establish real estate courses at institutions of higher learning located in the state and accred ited by
the State Regents for Higher Education for the purpose of making such courses available to licensees and the
general public; and
4. To contract for a particular educational project in the field of real estate to further the purposes of the
Oklahoma Real Estate License Code.
20
OKlAHOmA ReAl eStAte COmmISSIOn RuleS
(AS OF JulY 1, 2011)
tABle OF COntentS
tItle 605. OKlAHOmA ReAl eStAte COmmISSIOn
Chapter Section
1. Administrative Operations................................................................................................................605:1-1-1
10. Requirements, Standards and Procedures .....................................................................................605:10-1-1
________________________________
CHApteR 1. ADmInIStRAtIVe OpeRAtIOnS
Subchapter Section
1. General Provisions ........................................................................................................................605:1-1-1
[Authority: 75 O.S., Section 858-208]
SuBCHApteR 1. GeneRAl pROVISIOnS
Section
605:1-1-1 Statement of Purpose
605:1-1-2 Authority
605:1-1-3 Title and Construction
605:1-1-4 Operational Procedures
______________________________________________
CHApteR 10. ReQuIRementS, StAnDARDS AnD pROCeDuReS
Subchapter Section
1. General Provisions ......................................................................................................................605:10-1-1
3. Education and Examination Requirements ................................................................................605:10-3-1
5. Instructor/Entity Requirements and Standards ...........................................................................605:10-5-1
7. Licensing Procedures and Options .............................................................................................605:10-7-1
9. Broker’s Operational Procedures ................................................................................................605:10-9-1
11. Associate’s Licensing Procedures ............................................................................................605:10-11-1
13. Trust Account Procedures .........................................................................................................605:10-13-1
15. Disclosures ...............................................................................................................................605:10-15-1
17. Causes for Investigation; Hearing Process; Prohibited Acts; Discipline ................................605:10-17-1
[Authority: 75 O.S., Section 858-208]
SuBCHApteR 1. GeneRAl pROVISIOnS
Section
605:10-1-1 Purpose
605:10-1-2 Definitions
605:10-1-3 Appeal of Administrative Decisions; Procedures
605:10-1-4 Returned Checks—Disposition
SuBCHApteR 3. eDuCAtIOn AnD eXAmInAtIOn ReQuIRementS
Section
605:10-3-1 Prelicense Education Requirements
605:10-3-2 Application for License
605:10-3-3 Proceedings Upon Application for a License
21
605:10-3-4 Broker Applicant; Experience
605:10-3-5 Examinations
605:10-3-6 Continuing Education Requirements
605:10-3-7 Provisional Sales Associate Postlicense Education Requirement
SuBCHApteR 5. InStRuCtOR AnD entItY ReQuIRementS AnD StAnDARDS
Section
605:10-5-1 Approval of Prelicense Course Offerings
605:10-5-1.1 Approval of Post-License Course Offerings
605:10-5-2 Approval of Continuing Education Offerings
605:10-5-3 Standards for Commission Approved Real Estate Courses
SuBCHApteR 7. lICenSInG pROCeDuReS AnD OptIOnS
Section
605:10-7-1 License Issuance
605:10-7-1.1 Documentation Required for Compliance Necessary to Verify Citizenship, Qualified Alien
Status, and Eligibility Under the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996
605:10-7-2 License Terms; Renewals; Reinstatements
605:10-7-3 Placement of License on Inactive Status
605:10-7-4 Request for Activation or Reissuance of License
605:10-7-5 Name Changes
605:10-7-6 Certification of License History
605:10-7-7 Branch Offices
605:10-7-8 Corporation Licensing Procedures and Requirements of Good Standing
605:10-7-8.1 Partnership Licensing Procedures and Requirements of Good Standing
605:10-7-8.2 Association Licensing Procedures and Requirements of Good Standing
605:10-7-8.3 Sole Proprietor Licensing Procedures
605:10-7-9 Nonresident Licensing
605:10-7-10 Resident Applicants Currently or Previously Licensed in Other States
SuBCHApteR 9. BROKeR’S OpeRAtIOnAl pROCeDuReS
Section
605:10-9-1 Place of Business and Broker Requirements
605:10-9-2 Office Identification
605:10-9-3 Trade Names
605:10-9-4 Advertising
605:10-9-5 Broker Change of Address or telephone number
605:10-9-6 Death or Disability of Broker
605:10-9-7 Requirements for Cessation of Real Estate Activities
605:10-9-8 Branch Office Closing Instructions
SuBCHApteR 11. ASSOCIAte’S lICenSInG pROCeDuReS
Section
605:10-11-1 Acts of Associates
605:10-11-2 Associate Licenses
605:10-11-3 Associate’s Corporation or Association
SuBCHApteR 13. tRuSt ACCOunt pROCeDuReS
Section
605:10-13-1 Duty to Account; Broker
605:10-13-2 Duty to Account; Associate
605:10-13-3 Special Escrow Disbursement
22
SuBCHApteR 15. DISClOSuReS
Section
605:10-15-1 Disclosure of Beneficial Interest or Referrals
605:10-15-2 Broker Relationships Act to become effective November 1, 2000
605:10-15-3 Requirements for Furnishing Psychological Factors
605:10-15-4 Residential Property Condition Disclosure Act Forms
SuBCHApteR 17. CAuSeS FOR InVeStIGAtIOn—HeARInG pROCeSS—
pROHIBIteD ACtS—DISCIplIne
Section
605:10-17-1 Commissions and Disputes
605:10-17-2 Complaint Procedures
605:10-17-3 Complaint Hearings; Notice and Procedures
605:10-17-4 Prohibited Dealings
605:10-17-5 Substantial Misrepresentation
605:10-17-6 Requirements for Suspended/Revoked Brokers and Associates
605:10-17-7 Cessation of Licensed Activities upon Loss of License
AppenDIX
Appendix A. Residential Property Condition Disclosure Statement
Appendix B. Residential Property Condition Disclaimer Statement Form
23
CHApteR 1. ADmInIStRAtIVe OpeRAtIOnS
Subchapter Section
1. General Provisions ............................................................................................................................605:1-1-1
[Authority: 75 O.S., Section 858-208]
SuBCHApteR 1. GeneRAl pROVISIOnS
Section
605:1-1-1 Statement of purpose
605:1-1-2 Authority
605:1-1-3 title and Construction
605:1-1-4 Operational procedures
605:1-1-1. Statement of purpose
The fundamental and primary purpose of the Real Estate Commission is to safeguard the public interest
and provide quality services by assisting and providing resources; encouraging and requiring high standards
of knowledge and ethical practices of licensees; investigating and sanctioning licensed activities; and through
the prosecution of any unlicensed person who violates the “Oklahoma Real Estate License Code and Rules.”
605:1-1-2. Authority
The rules of this Title are hereby adopted in accordance with the provisions of Title 59, Section 858-101
et seq. and the provisions of Sections 301-327 of Title 75, Oklahoma Statutes, 1971.
605:1-1-3. title and construction
The rules of this Title shall be known as the “Oklahoma Real Estate Commission Rules.”
605:1-1-4. Operational procedures
(a) Organization. The organization of the Commission is declared to be that as enumerated in Sections
858-201 through 858-204 of the heretofore described Code.
(b) Operational procedures. The general course and method of operation shall be as hereinafter specified
in overall provisions of the rules of this Title.
(c) Open Records Act. In conformance with Title 51, Section 24 A.1., et seq, Oklahoma Statutes, 1985,
titled “Oklahoma Open Records Act” all open records of the Real Estate Commission may be inspected and
copied in accordance with procedures, policies, and fee as required by the Commission. The Commission
shall charge the following:
(1) A fee of $.25 for each xerographic copy or micrographic image.
(2) A fee of $1.00 for each copy to be certified.
(3) A fee of $10.00 per hour for a record or file search.
(4) A fee of Forty Dollars ($40.00) per extract for License Data extract.
(5) A fee of Fifty Dollars ($50.00) every three (3) months for an Examinee Data extract.
(6) A fee of no more than Seven Dollars and Fifty Cents ($7.50) for a convenience fee for any elec-tronic/
on-line transaction.
(d) Directory of licensees. One copy of the Directory of Licensees shall be provided each licensee
if Commission funds permit. Additional copies shall be available to licensees and the public from the
Commission upon payment of a charge based on actual cost of production and printing. Copies of the
Directory may be furnished to governmental agencies without charge as inventory permits.
(e) petition for promulgation, amendment or repeal of any rule. Any person may petition the Commission
in writing requesting a promulgation, amendment or repeal of any rule.
(1) The petition must be in writing in business letter form or in the form of petitions used in civil cases
in this State, and shall contain an explanation and the implications of the request and shall be:
(A) Signed by the person filing the petition and be filed with the Secretary-Treasurer of the
Commission.
(B) Submitted to the Commission at least thirty (30) days prior to a regular meeting.
(C) Considered by the Commission at its first meeting following such thirty (30) days.
24
(D) Scheduled for a public hearing before the Commission within sixty (60) days after being
considered by the Commission in a regular meeting.
(2) Within sixty (60) days after the public hearing, the Commission shall either grant or deny the
petition. If the petition is granted, the Commission shall immediately begin the procedure for the prom-ulgation,
amendment or repeal of any rule pursuant to Title 75 O.S. 303.
(3) If the petition is denied the parties retain their rights under 75 O.S. Sec. 318, to proper Judicial
Review.
(f) petition for declaratory ruling of any rule or order.
(1) Any person may petition the Commission for a declaratory ruling as authorized by Section 307 of
Title 75 of the Oklahoma Statutes as to the applicability of any rule or order of the Commission. Such
petition shall:
(A) be in writing;
(B) be signed by the person seeking the ruling;
(C) state the rule or order involved;
(D) contain a brief statement of facts to which the ruling shall apply; and
(E) if known and available to petitioner, include citations of legal authority in support of such
views.
(2) The Commission shall have at least thirty (30) days to review the petition. Following the review
period, the Commission shall consider the petition at its next meeting.
(3) The Commission may compel the production of testimony and evidence necessary to make its
declaratory ruling.
(4) Declaratory rulings shall be available for review by the public at the Commission office.
(g) Contract Forms Committee.
(1) The Contract Forms Committee is required to draft and revise real estate purchase and/or lease
contracts and any related addenda for standardization and use by real estate licensees (Title 59 O.S. 858-
208 {14}).
(2) The committee shall consist of eleven (11) members. Three (3) members shall be appointed
by the Oklahoma Real Estate Commission; three (3) members shall be appointed by the Oklahoma
Bar Association; and five (5) members shall be appointed by the Oklahoma Association of Realtors,
Incorporated.
(3) The initial members’ terms shall begin upon development of the forms and each member
shall serve through the effective date of implementation of form(s) plus one (1) year. Thereafter, the
Oklahoma Real Estate Commission shall appoint one (1) member for one (1) year, one (1) member
for two (2) years, and one (1) member for three (3) years; the Oklahoma Bar Association shall appoint
one (1) member for one (1) year, one (1) member for two (2) years, and one (1) member for three (3)
years and; the Oklahoma Association of Realtors, Incorporated shall appoint two (2) members for one
(1) year, two (2) members for two (2) years, and one (1) member for three (3) years. Thereafter, terms
shall be for three (3) years and each member shall serve until their term expires and their successor has
been appointed. Any vacancy which may occur in the membership of the committee shall be filled by
the appropriate appointing entity.
(4) A member can be removed for just cause by the committee.
(5) Each member of the committee shall be entitled to receive travel expenses essential to the perfor-mance
of the duties of his appointment, as provided in the State Travel Reimbursement Act.
CHApteR 10. ReQuIRementS, StAnDARDS AnD pROCeDuReS
Subchapter Section
1. General Provisions .........................................................................................................................605:10-1-1
3. Education and Examination Requirements ...................................................................................605:10-3-1
5. Instructor and Entity Requirements and Standards .......................................................................605:10-5-1
7. Licensing Procedures and Options ................................................................................................605:10-7-1
9. Broker’s Operational Procedures ...................................................................................................605:10-9-1
11. Associate’s Licensing Procedures ...............................................................................................605:10-11-1
13. Trust Account Procedures ............................................................................................................605:10-13-1
15. Disclosures ..................................................................................................................................605:10-15-1
17. Causes for Investigation—Hearing Process—Prohibited Acts—Discipline .............................605:10-17-1
25
[Authority: 59 O.S., Section 858-208]
SuBCHApteR 1. GeneRAl pROVISIOnS
Section
605:10-1-1. purpose
605:10-1-2. Definitions
605:10-1-3. Appeal of administrative decisions—procedures
605:10-1-4. Returned checks—disposition
605:10-1-1. purpose
The rules of this Chapter establish procedures and standards that apply to real estate licensees, real estate
schools and instructors, and which must be complied with as authorized under the provisions of the Oklahoma
Real Estate License Code, Title 59, O.S., Sections 858-101 through 858-605.
605:10-1-2. Definitions
When used in this Chapter, masculine words shall include the feminine and neuter, and the singular
includes the plural. The following words or terms, when used in this Chapter, shall have the following
meaning, unless the context clearly indicates otherwise:
“Advertising” means all forms of representation, promotion and solicitation disseminated in any
manner and by any means of communication to consumers for any purpose related to licensed real estate
activity.
“Bona fide offer” means an offer in writing.
“Branch office broker” means a person who qualified for a broker license and who is designated by
a broker to direct and supervise a branch office on behalf of the broker in conformance with Section 858-
310 of the Code. A branch office broker is considered an associate of the broker and a managing broker of
the branch office.
“Broker” means a sole proprietor, corporation, managing corporate broker of a corporation, associa-tion,
managing broker member or manager of an association, partnership, or managing partners of a part-nership
and shall be one and the same as defined as a broker in Section 858-102 of the Code and whom
the Commission shall hold responsible for all actions of associates who are assigned to said broker.
“Code” when used in the rules of this Chapter, means Title 59, Section 858-101 et seq, Oklahoma
Statutes as adopted 1974 and amended.
“entity” means association, corporation and partnership.
“Filed” means the date of the United States postal service postmark or the date personal delivery is
made to the Commission office.
“Firm” means a sole proprietor, corporation, association or partnership.
“Inactive status” means a period in which a licensee is prohibited from performing activities which
require an active license.
“nonresident” means a person who is licensed to practice in this state, however, does not maintain a
place of business in this state but maintains a place of business in another state and who periodically comes
to this state to operate and perform real estate activities.
“previously licensed applicant” means a person who has been licensed in another state and is desir-ing
to obtain a resident license in this state.
“provisional sales associate” shall be synonymous in meaning with sales associate except where it
is specifically addressed in Subchapters 3, 5 and 7 of this Chapter.
“Resident” means a person who is licensed in this state and operates from a place of business in this
state.
“Sole proprietor” means a broker who is the sole owner of a real estate business.
“trade name” means the name a firm is to be known as and which is used in advertising by the firm
to promote and generate publicity for the firm. A firm may or may not do business in the name under which
their license is issued but must register with the Commission all trade names used by the firm.
605:10-1-3. Appeal of administrative decisions; procedures
(a) Unless specifically provided for elsewhere in this Chapter, any adverse administrative action or decision
rendered by the Commission or its staff on behalf of the Commission, may be appealed by the adversely
affected party filing within thirty (30) days of notice of such action or decision, a written request for a hearing.
26
(b) Upon receipt of a request for any non-disciplinary hearing provided for in this Section, or any other rule
of this Chapter, the Secretary-Treasurer shall schedule an administrative decision hearing before a Hearing
Examiner, a selected panel of the Commission, or the Commission as a whole giving at least fifteen (15)
days notice of such hearing. Such hearing shall be public except that upon motion, witnesses, other than the
adversely affected appealing party, may be excluded from the hearing room when such witnesses are not tes-tifying.
A court reporter shall be present to record the proceedings in behalf of the Commission. Any person
desiring a copy of the transcript of the proceedings may purchase such from the reporter.
(c) In the case of a proceeding conducted by the Commission as a whole or a panel of the Commission, the
Chairman or his designee shall preside. Designated counsel shall advise the chair as to rulings upon the ques-tions
of admissibility of evidence, competence of witnesses and any other question of law where such ruling
is required or requested.
(d) The appealing party may present his or her own evidence or may present such through his or her counsel.
In order that the hearing will not be encumbered by evidence having no bearing on the issues, testimony by
all witnesses will be limited to matters relevant to the issues involved.
(e) The order of procedure shall be as follows:
(1) Recitation of the administrative action or decision.
(2) Presentation of the adversely affected party’s appeal.
(3) Questioning of the appealing party by the hearing panel or Hearing Examiner.
(4) Response by the Commission or Commission representatives detailing grounds for and
basis for the administrative decision or action.
(5) Examination of witnesses by appealing party with cross-examination of such witnesses.
(6) Closing statements by the appealing party.
(f) If the case be heard by the Commission as a whole, the Commission shall deliberate and render its deci-sion
with confirmation of such decision in writing in the form of an Order distributed to all parties by mail.
(g) In the case of a hearing conducted by a Hearing Examiner or a panel of the Commission, following the
hearing, the Hearing Examiner or attorney sitting as counsel to the panel of the Commission shall prepare
a recommended Order to be considered by the Real Estate Commission as a whole at a future meeting. All
parties will be furnished copies of the recommended Order and notified as to the date the recommendations
will be considered by the Commission for adoption. At the same time, notice will be given also to the parties
that written exceptions or requests to present oral exceptions or arguments, if any, should be submitted on or
before a designated date pursuant to Section 311, Title 75, Oklahoma Statutes. Upon adoption of the recom-mended
Order by the Commission as a whole, such Order shall be distributed to all parties.
605:10-1-4. Returned checks—disposition
(a) All fees are received subject to collection. Payment of a fee to the Commission with a dishonored check
shall be prima facie evidence of a violation of Title 59, Section 858-312.
(b) If the Commission receives a check that is dishonored upon presentation to the bank on which the check
is drawn, a returned check fee of Thirty-five Dollars ($35.00) will be charged. If such payment is for fees, or
other amounts due the Commission, and the check is not replaced within the specified time frame as deter-mined
by the Commission, such request shall be deemed incomplete and the transaction null and void.
(c) Other services may be delayed or denied if a check is dishonored upon presentation to the bank on which
the check is drawn.
SuBCHApteR 3. eDuCAtIOn AnD eXAmInAtIOn ReQuIRementS
Section
605:10-3-1. prelicense education requirements
605:10-3-2. Application for license
605:10-3-3. proceedings upon application for a license
605:10-3-4. Broker applicant; sales associate experience
605:10-3-5. examinations
605:10-3-6. Continuing education requirements
605:10-3-7. provisional sales associate postlicense education requirement
605:10-3-1. prelicense education requirements
(a) On and after July 1, 1993, as evidence of an applicant’s having satisfactorily completed those education
requirements as set forth in Sections 858-302 and 858-303 of the Code, each applicant for licensure shall
27
present with his or her application a certification showing successful completion of the applicable course of
study approved by the Commission as follows:
(1) To qualify an applicant for examination and licensure as a provisional sales associate, the course
shall consist of at least ninety (90) clock hours of instruction or its equivalent as determined by the
Commission. In order for a provisional sales associate to obtain a sales associate license, the provi-sional
sales associate must, following issuance of a provisional license, complete additional education as
required in Section 858-302 of the Code. The prelicense course of study shall be referred to as the Basic
Course of Real Estate, Part I of II and shall encompass the following areas of study:
(A) Real Estate Economics and Marketing
(B) Nature of Real Estate
(C) Rights and Interest in Real Estate
(D) Legal Descriptions
(E) Title Search, Encumbrances, and Land Use Control
(F) Transfer of Rights
(G) Service Contracts
(H) Estimating Transaction Expenses
(I) Value and Appraisal
(J) Marketing Activities
(K) Fair Housing
(L) Contract Law Overview
(M) Contract Law and Performance
(N) Offers and Purchase Contracts
(O) Financing Real Estate
(P) Closing a Transaction
(Q) Regulations Affecting Real Estate
(R) Disclosures and Environmental Issues
(S) Property Management and Leasing
(T) Risk Management
(U) Professional Standards of Conduct
(V) Law of Agency
(2) To qualify an applicant for examination and licensure as a broker, the course shall consist of at least
ninety (90) clock hours of instruction or its equivalent as determined by the Commission. Such course
of study shall be referred to as the Advanced Course in Real Estate and shall encompass the following
areas of study:
(A) Laws and Rules Affecting Real Estate Practice
(B) Broker Supervision
(C) Establishing a Real Estate Office
(D) Professional Development
(E) Business, Financial, and Brokerage Management
(F) Oklahoma Broker Relationships
(G) Anti-Trust and Deceptive Trade
(H) Risk Management and Insurance
(I) Mandated Disclosures, Hazards, and Zoning
(J) Real Estate Financing
(K) Specialized Property Operations and Specialty Areas
(L) Trust Accounts and Trust Funds
(M) Closing a Real Estate Transaction
(N) Closing Statements
(O) Professional Standards of Conduct
(P) Property Ownership
(Q) Land Use Controls and Regulations
(R) Valuation and Market Analysis
(S) Law of Agency
(T) Contracts
(U) Transfer of Property
(V) Practice of Real Estate
(W) Real Estate Calculations
28
(b) As evidence of an applicant’s having successfully completed those education requirements as set forth in
Section 858-304 of the Code, each applicant shall present a certified transcript from an institution of higher
education, accredited by the Oklahoma State Regents for Higher Education or the corresponding accrediting
agency of another jurisdiction.
(1) The basic course of real estate shall be limited to Basic Real Estate Principles and Practices; pro-vided,
however, that a course or combination of courses not so titled may be accepted if the course
content has been determined by the Commission to be equivalent as one and the same as enumerated in
this Section.
(2) The advanced course of real estate shall be limited to Advanced Real Estate Principles and Practices;
provided that a course or combination of courses not so titled may be accepted if the course content has
been determined by the Commission to be equivalent as one and the same as that enumerated in this
Section.
(3) The Commission shall accept in lieu of a certified transcript a course completion certificate as pre-scribed
by the Commission.
(c) entities allowed to seek approval. The education courses required of this Section shall be satisfied by
courses approved by the Commission and offered by:
(1) The Commission
(2) An area vocational-technical school
(3) A college or university
(4) A private school
(5) The Oklahoma Association of Realtors, the National Association of Realtors, or any affiliate there-of,
(6) The Oklahoma Bar Association, American Bar Association, or any affiliate thereof; or
(7) An education provider.
(d) Attendance and successful completion required for in-class credit. To complete any in-class offer-ing,
a person must physically be present during all of the offering time and successfully complete all course
requirements to include an examination.
(e) Successful completion of materials and examination required for distance education credit. To
complete a distance education course offering, a person must successfully complete all course requirements
to include all modules and an examination.
605:10-3-2. Application for license
(a) Requirements for completing application.
(1) Any person seeking a real estate license shall make application for such license on a form
provided by the Commission. The form shall contain, but not be limited to, the following:
(A) Legal name to include first, middle and last name.
(B) Routine biographical information.
(C) License history in Oklahoma and other states.
(D) Criminal and/or civil charges or convictions, including bankruptcy and judgments.
(E) Compliance with Title 59 O.S. 858.301.1 regarding felony convictions.
(F) Recent photograph.
(G) Birth date.
(H) Evidence of successful completion of course requirement as specified in the “Code”.
(I) A sworn statement as to accuracy of the application information.
(J) Documentation required for compliance necessary to verify citizenship, qualified alien status,
and eligibility under the Personal Responsibility and Work Opportunity Reconciliation Act
of 1996.
(K) Social security number, pursuant to Title 56, Oklahoma Statutes, Section 240.21A.
(L) Submit to a national criminal history record check, as defined by Section 150.9 of Title 74
of the Oklahoma Statutes. A fee amount, not to exceed sixty dollars ($60.00), shall be sent
to the Commission to begin the process of the national criminal history check.
(i) A completed national criminal history record check, completed for the Commission, shall
be valid for six (6) months from the date of issuance from the issuing authority.
(ii) In the event an applicant is not physically able to submit to finger printing, other applicant
identifiers shall be utilized, i.e., name, birth date and social security number.
(2) An applicant indicating a bankruptcy or judgment, criminal and/or civil charges or convictions
on the application, must submit with the application official documents to the Commission which
29
pertain to the disposition of the matter. If official documents are unable to be obtained, a detailed letter
explaining the matter(s) must be attached to the application.
(b) Applicant shall appear for examination. Each applicant shall appear for an examination as soon as
possible subsequent to the filing of an approved application or the signing of a form as required in 605:10-
3-3.
(c) Applicant must be of good moral character. The application submitted by an individual seeking a
license must indicate that the applicant possesses a reputation for honesty, truthfulness, trustworthiness,
good moral character, and that he or she bears a good reputation for fair dealing.
(d) Determining good moral character. In determining whether or not an applicant meets the definition
of good moral character, the Commission will consider, but not be limited to, the following:
(1) Whether the probation period given in a conviction or deferred sentence has been completed and
fully satisfied to include fines, court costs, etc.
(2) Whether the restitution ordered by a court in a criminal conviction or civil judgement has been
fully satisfied.
(3) Whether a bankruptcy that is real estate related has been discharged.
(4) Whether an applicant has been denied licensure or a license has been suspended or revoked by this
or any other state or jurisdiction to practice or conduct any regulated profession, business or vocation
because of any conduct or practices which would have warranted a like result under the Oklahoma
“Code”.
(5) Whether an applicant has been guilty of conduct or practices in this state or elsewhere which would
have been grounds for revocation or suspension under the current Oklahoma “Code” had the applicant
been licensed.
(e) Subsequent good conduct. If, because of lapse of time and subsequent good conduct and reputation
or other reason deemed sufficient, it shall appear to the Commission that the interest of the public will not
likely be in danger by the granting of such license, the Commission may approve the applicant as relates
to good moral character.
605:10-3-3. proceedings upon application for a license
(a) Qualified application.
(1) Approved application. If the Commission is of the opinion that an applicant for license is quali-fied,
the application shall be approved.
(2) Denial of application. If, from the application filed, or from answers to inquiries, or from com-plaints
or information received, or from investigation, it shall appear to the Commission the applicant
is not qualified at any time before the initial license is issued, the Commission shall refuse to approve
the application and shall give notice of that fact to the applicant within fifteen (15) days after its ruling,
order or decision.
(b) Appeal of denial of application. Upon written request from the applicant, filed within thirty (30)
days after receipt of such notice of denial, the Commission shall set the matter for hearing to be conducted
within sixty (60) days after receipt of the applicant’s request.
(c) Applicant hearing. The hearing shall be at the time and place as prescribed by the Commission. At
least ten (10) days prior to the date set for hearing the Commission shall notify the applicant and other per-sons
protesting, and shall set forth in a notice the reason or reasons why the Commission refused to accept or
approve the application. The written notice of the hearing may be served by personal delivery to the applicant
and protesters, or by mailing the same by registered or certified mail to the last known address of the applicant
and/or protesters.
(d) Hearing procedures. The hearing procedure shall be that as outlined in 605:10-1-3 titled “Appeal of
administrative decisions; procedures.”
605:10-3-4. Broker applicant; experience
(a) No individual shall be licensed as a real estate broker unless in addition to the other requirements in the
Code, he or she has served two (2) years, or its equivalent, as a licensed real estate provisional sales associate
and/or sales associate, with and under the instructions and guidance of a licensed real estate broker of this
state or any other state at least twenty-four (24) months within the five (5) year period immediately prior to
the filing of his or her application for license as a real estate broker in Oklahoma.
(b) An application submitted for the purpose of seeking a license to function as a real estate broker shall not
be accepted for filing by the Commission unless such applicant has completed the two (2) year apprenticeship
requirement on or before the date such application is submitted.
30
605:10-3-5. examinations
(a) Applicant must appear in person. When an application for examination has been submitted to the
Commission, the applicant shall be required to appear in person, at a time and place to be designated by the
Commission, and answer questions based on the required subject matter as prescribed elsewhere in the rules
of this Chapter. On and after August 1, 2001, each broker examination fee shall be Seventy-five Dollars
($75.00) and each provisional sales associate/sales associate examination fee shall be Sixty Dollars ($60.00).
(b) Special Accommodations. In cases where special accommodations are necessary under the require-ments
of the Americans with Disabilities Act, applicants must notify the examination supplier in advance by
submitting a written request, on a form prescribed by the Commission, describing the disability and necessary
accommodations.
(c) Failure to pass examination. If an applicant fails to pass the examination prescribed by the Commission,
the Commission may permit subsequent examinations upon receipt of a new examination fee for each exami-nation
to be attempted.
(d) Applicant request to view failed examination. An applicant who fails the examination has the option
of reviewing their missed questions at the end of their examination. An applicant may challenge the validity
of any question(s) they identify as incorrectly graded. A challenge to a question that pertains to the Oklahoma
law portion of the examination will be sent to the Commission by the examination supplier. A challenge to a
question that pertains to the national portion will fall under the review policy of the examination supplier. In
either case, both the examination supplier and/or the Commission shall have five (5) business days in which
to review and issue a response to the applicant. Applicants will be allowed up to one (1) hour to review their
exam and the applicant will not be allowed to test on the same day they review a failed examination. No notes,
pencils, or electronic devices will be allowed during a review nor will they be allowed to leave the examina-tion
area with the examination questions.
(e) Application valid for one year. The original examination application shall be valid for one (1) year
from date of filing. After such date, an applicant must complete a new original application form.
(f) passing percentile of examination. A score of seventy-five percent (75%) or more shall be considered
a passing grade on the broker or provisional sales associate/sales associate examination.
(g) Validity period of examination results. The results of an examination wherein an applicant scored a
passing grade shall be valid for one (1) year from the date of such examination.
(h) Disciplinary examination fee. A fee shall be charged for an examination which is directed by Order of
the Commission as disciplinary action.
605:10-3-6. Continuing education requirements
(a) Definition. Continuing education shall be defined as any real estate oriented education course or
equivalent, hereinafter called offering(s) intended:
(1) To improve the knowledge of licensees.
(2) To keep licensees abreast of changing real estate practices and laws.
(3) To help licensees meet the statutory requirements for license renewal.
(b) purpose. The purpose of continuing education is to provide an educational program through which
real estate licensees can continually become more competent and remain qualified to engage in real estate
activities for which they are licensed. Such activities involve facts and concepts about which licensees must
be knowledgeable in order to safely and confidently conduct real estate negotiations and transactions in the
public’s best interest.
(c) Goals. The goals of continuing education are:
(1) To provide licensees with opportunity for obtaining necessary current information and knowledge
which will enable them to conduct real estate negotiations and transactions in a legal and professional
manner in order to better protect public interest.
(2) To assure that the licensees are provided with current information regarding new and/or changing
laws and regulations which affect the real estate business.
(3) To ensure that the consumers interest is protected from unknowledgeable licensees.
(d) Objectives. The objectives of continued education are as follows:
(1) For licensees to expand and enhance their knowledge and expertise so as to be continually
effective, competent, and ethical as they practice real estate.
(2) For licensees to review and update their knowledge of federal, state and local laws and regulations
which affect real estate practices.
31
(e) entities allowed to seek approval. The Commission may approve and/or accept any offering provided
by an entity which meets the purposes, goals, and objectives of the continuing education requirement. The
Commission may accept the following offerings as proof of meeting the cont

OKLAHOMA
REAL ESTATE
LICENSE CODE
AND
RULES
As of July 1, 2011
THE OKLAHOMA REAL ESTATE COMMISSION
Executive Office
Shepherd Mall
2401 N.W. 23rd Street, Suite 18
Oklahoma City, Oklahoma 73107-2431
www.orec.ok.gov
OKLAHOMA REAL ESTATE COMMISSION
Members
Charles Barnes
Mike Cassidy
Peter Galbraith
John Mosley
Randy Saunier
Stephen Sherman
Martin VanMeter
This publication, printed by the University of Oklahoma Printing Services, is issued by the Oklahoma Real Estate
Commission, as authorized by Anne M. Woody, Executive Director. 2,000 copies have been prepared and distributed
at no cost to the taxpayers of Oklahoma. The entire cost of preparing this publication has been borne by the Real
Estate Licensees through their Education and Recovery Fund Fees. Copies have been deposited with the Publications
Clearinghouse of the Oklahoma Department of Libraries.
During 2011, the License Law and Rules were again amended. This
booklet reflects those changes and is so designed that it may be
inserted in the back of the Oklahoma Real Estate Commission study
manuals; thereby providing you with current information and a ready
reference on the License Law and Rules, as amended.
1
Supplement
license Code Amended
effective August 26, 2011
House Bill 1598
SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 858-
515.1 of Title 59, unless there is created a duplication in numbering, reads as follows:
A. In connection with any real estate transaction, the size or area, in square footage or otherwise, of the subject
property shall not be required to be provided by any real estate licensee, and if provided, shall not be considered
any warranty or guarantee of the size or area information, in square footage or otherwise, of the subject property.
B. 1. If a real estate licensee provides any party to a real estate transaction with third-party information con-cerning
the size or area, in square footage or otherwise, of the subject property involved in the transaction, the
licensee shall identify the source of the information.
2. For the purposes of this subsection, “third-party information” means:
a. an appraisal or any measurement information prepared by a licensed appraiser,
b. a survey or developer’s plan prepared by a licensed surveyor,
c. a tax assessor’s public record, or
d. a builder’s plan used to construct or market the property.
C. A real estate licensee has no duty to the seller or purchaser of real property to conduct an independent inves-tigation
of the size or area, in square footage or otherwise, of a subject property, or to independently verify the
accuracy of any third-party information as such term is defined in paragraph 2 of subsection B of this section.
D. A real estate licensee who has complied with the requirements of this section, as applicable, shall have no
further duties to the seller or purchaser of real property regarding disclosed or undisclosed property size or area
information, and shall not be subject to liability to any party for any damages sustained with regard to any con-flicting
measurements or opinions of size or area, including exemplary or punitive damages.
SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 858-
515.2 of Title 59, unless there is created a duplication in numbering, reads as follows:
A. If a real estate licensee has provided any third-party information, as defined in paragraph 2 of subsection B
of Section 1 of this act, to any party to a real estate transaction concerning size or area of the subject real prop-erty,
a party to the real estate transaction may recover damages from the licensee in a civil action only when
a licensee knowingly violates the duty to disclose the source of the information, as required in paragraph 1 of
subsection B of Section 1 of this act.
B. The sole and exclusive civil remedy at common law or otherwise for a violation of paragraph 1 of subsection
B of Section 1 of this act by a real estate licensee shall be an action for actual damages suffered by the party as
a result of such violation and shall not include exemplary or punitive damages.
C. For any real estate transaction commenced after the effective date of this act, any civil action brought pursu-ant
to this section shall be commenced within two (2) years after the date of transfer of the subject real property.
D. In any civil action brought pursuant to this section, the prevailing party shall be allowed court costs and
reasonable attorney fees to be set by the court and collected as costs of the action.
E. A transfer of a possessory interest in real property subject to the provisions of this act may not be invalidated
solely because of the failure of any person to comply with the provisions of this act.
2
F. The provisions of this act shall apply to, regulate and determine the rights, duties, obligations and remedies,
at common law or otherwise, of the seller marketing his or her real property for sale through a real estate
licensee, and of the purchaser of real property offered for sale through a real estate licensee, with respect to
disclosure of third-party information concerning the subject real property’s size or area, in square footage or
otherwise, and this act hereby supplants and abrogates all common law liability, rights, duties, obligations and
remedies of all parties therefor.
license Code Amended
effective november 1, 2011
Senate Bill 648
SECTION 1. AMENDATORY 59 O.S. 2001, Section 858-307.2, as amended by Section 4, Chapter 274,
O.S.L. 2008 (59 O.S. Supp. 2010, Section 858-307.2), is amended to read as follows:
§858-307.2. A. Beginning November 1, 2004, as a condition of renewal or reactivation of the license, each
licensee with the exception of those exempt as set out in this section shall submit to the Oklahoma Real Estate
Commission evidence of completion of a specified number of hours of continuing education courses approved
by the Commission, within the thirty-six (36) months immediately preceding the term for which the license is
to be issued. The number of hours, or its equivalent, required for each licensed term shall be determined by the
Commission and promulgated by rule. Each licensee shall be required to complete and include as part of said
continuing education a certain number of required subjects as prescribed by rule.
B. The continuing education courses required by this section shall be satisfied by courses approved by the
Commission and offered by:
1. The Commission;
2. A technology center school;
3. A college or university;
4. A private school;
5. The Oklahoma Association of Realtors, the National Association of Realtors, or any affiliate thereof;
6. The Oklahoma Bar Association, American Bar Association, or any affiliate thereof; or
7. An education provider.
C. The Commission shall maintain a list of courses which are approved by the Commission.
D. The Commission shall not issue an active renewal license or reactivate a license unless the continuing educa-tion
requirement set forth in this section is satisfied within the prescribed time period.
E. The provisions of this section do not apply:
1. During the period a license is on inactive status;
2. To a licensee who holds a provisional sales associate license;
3. To a nonresident licensee licensed in this state if the licensee maintains a current license in another state or
states and has satisfied the continuing education requirement for license renewal in that state or states. If the
nonresident licensee is exempt from the continuing education requirements in all states where the nonresident
holds a license, the nonresident licensee shall successfully complete this state’s continuing education require-ment
for license renewal or reactivation; or
4. To a corporation, association, partnership or branch office.
3
SECTION 2. AMENDATORY 59 O.S. 2001, Section 858-401, as amended by Section 3, Chapter 142,
O.S.L. 2004 (59 O.S. Supp. 2010, Section 858-401), is amended to read as follows:
§858-401. A. In addition to any other penalties provided by law, any person unlicensed pursuant to The
Oklahoma Real Estate License Code who shall willingly and knowingly violate any provision of this Code,
upon conviction, shall be guilty of a misdemeanor punishable by a fine of not more than One Thousand Dollars
($1,000.00), or by imprisonment in the county jail for not more than six (6) months, or by both such fine and
imprisonment.
B. In addition to any civil or criminal actions authorized by law, whenever, in the judgment of the Oklahoma
Real Estate Commission, any unlicensed person has engaged in any acts or practices which constitute a violation
of the Oklahoma Real Estate License Code, the Commission may:
1. After notice and hearing, and upon finding a violation of the Code, impose a fine of not more than Five
Thousand Dollars ($5,000.00) or the amount of the commission or commissions earned, whichever is greater
for each violation of the Code for unlicensed activity;
2. Make application to the appropriate court for an order enjoining such acts or practices, and upon a showing
by the Commission that such person has engaged in any such acts or practices, an injunction, restraining order,
or such other order as may be appropriate shall be granted by such court, without bond; or
3. Impose administrative fines pursuant to this subsection which shall be enforceable in the district courts of this
state. The order of the Commission shall become final and binding on all parties unless appealed to the district
court as provided in the Administrative Procedures Act. If an appeal is not made, such order may be entered on
the judgment docket of the district court in a county in which the debtor has property and thereafter enforced in
the same manner as an order of the district court for collection actions.
C. Notices and hearings required by this section and any appeals from orders entered pursuant to this section
shall be in accordance with the Administrative Procedures Act.
D. Such funds as collected pursuant to this section shall be deposited in the Oklahoma Real Estate Education
and Recovery Fund.
license Code Amended
effective november 1, 2011
Senate Bill 684
SECTION 1. AMENDATORY 59 O.S. 2001, Section 858-301, as last amended by Section 1, Chapter
114, O.S.L. 2010 (59 O.S. Supp. 2010, Section 858-301), is amended to read as follows:
§858-301. It shall be unlawful for any person to act as a real estate licensee, or to hold himself or herself out
as such, unless the person shall have been licensed to do so under this the Oklahoma Real Estate License Code.
However, nothing in this section shall:
1. Prevent any person, partnership, trust, association or corporation, or the partners, officers or employees of
any partnership, trustees or beneficiaries of any trust, association or corporation, from acquiring real estate for
its own use, nor shall anything in this section prevent any person, partnership, trust, association or corporation,
or the partners, officers or employees of any partnership, trustees or beneficiaries of any trust, association or
corporation, as owner, lessor or lessee of real estate, from selling, renting, leasing, exchanging, or offering to
sell, rent, lease or exchange, any real estate so owned or leased, or from performing any acts with respect to
such real estate when such acts are performed in the regular course of, or as an incident to, the management,
ownership or sales of such real estate and the investment therein;
2. Apply to persons acting as the attorney-in-fact for the owner of any real estate authorizing the final consum-mation
by performance of any contract for the sale, lease or exchange of such real estate;
3. In any way prohibit any attorney-at-law from performing the duties of the attorney as such, nor shall this
Code prohibit a receiver, trustee in bankruptcy, administrator, executor, or his or her attorney, from performing
4
his or her duties, or any person from performing any acts under the order of any court, or acting as a trustee
under the terms of any trust, will, agreement or deed of trust;
4. Apply to any person acting as the resident manager for the owner or an employee acting as the resident
manager for a licensed real estate broker managing an apartment building, duplex, apartment complex or court,
when such resident manager resides on the premises and is engaged in the leasing of property in connection with
the employment of the resident manager;
5. Apply to any person who engages in such activity on behalf of a corporation or governmental body, to
acquire easements, rights-of-way, leases, permits and licenses, including any and all amendments thereto, and
other similar interests in real estate, for the purpose of, or facilities related to, transportation, communication
services, cable lines, utilities, pipelines, or oil, gas, and petroleum products;
6. Apply to any person who engages in such activity in connection with the acquisition of real estate on behalf
of an entity, public or private, which has the right to acquire the real estate by eminent domain; or
7. Apply to any person who is a resident of an apartment building, duplex, or apartment complex or court, when
the person receives a resident referral fee. As used in this paragraph, a “resident referral fee” means a nominal
fee not to exceed One Hundred Dollars ($100.00), offered to a resident for the act of recommending the property
for lease to a family member, friend, or coworker; or
8. Apply to any person or entity managing a transient lodging facility. For purposes of this paragraph, “transient
lodging facility” means a furnished room or furnished suite of rooms which is rented to a person on a daily basis,
not as a principal residence, for a period less than thirty (30) days; or
9. Apply to employees of a licensed real estate broker who lease residential housing units only to eligible per-sons
who qualify through a state or federal housing subsidized program to lease the property in an affordable
housing development project. “Affordable housing development project” means a housing development of four
or more units constructed for lease to specifically eligible persons as required by the particular federal or state
housing program, including, but not limited to, the U.S. Department of Housing and Urban Development, the
U.S. Department Agriculture Rural Development, the U.S. Department of Treasury Internal Revenue Service,
or the Oklahoma Housing Finance Agency.
5
OKlAHOmA ReAl eStAte lICenSe CODe
title 59, Oklahoma Statutes of 1974
Section 858-101 through 858-605
As Amended
through July 1, 2011
GeneRAl pROVISIOnS
§858-101. title and construction. This Code shall be known and cited as “The Oklahoma Real Estate
License Code.”
§858-102. Definitions. When used in this Code, unless the context clearly indicates otherwise, the following
words and terms shall be construed as having the meanings ascribed to them in this section:
1. The term “real estate” shall include any interest or estate in real property, within or without the State
of Oklahoma, whether vested, contingent or future, corporeal or incorporeal, freehold or nonfreehold, and
including leaseholds, options and unit ownership estates to include condominiums, time-shared ownerships and
cooperatives; provided, however, that the term “real estate” shall not include oil, gas or other mineral interests,
or oil, gas or other mineral leases; and provided further, that the provisions of this Code shall not apply to any
oil, gas, or mineral interest or lease or the sale, purchase or exchange thereof;
2. The term “real estate broker” shall include any person, partnership, association or corporation, foreign or
domestic, who for a fee, commission or other valuable consideration, or who with the intention or expectation
of receiving or collecting a fee, commission or other valuable consideration, lists, sells or offers to sell, buys
or offers to buy, exchanges, rents or leases any real estate, or who negotiates or attempts to negotiate any such
activity, or solicits listings of places for rent or lease, or solicits for prospective tenants, purchasers or sellers, or
who advertises or holds himself out as engaged in such activities;
3. The term “broker associate” shall include any person who has qualified for a license as a broker and who
is employed or engaged by, associated as an independent contractor with, or on behalf of, a broker to do or deal
in any act, acts or transaction set out in the definition of a broker;
4. The term “real estate sales associate” shall include any person having a renewable license and employed
or engaged by, or associated as an independent contractor with, or on behalf of, a real estate broker to do or deal
in any act, acts or transactions set out in the definition of a real estate broker;
5. “Provisional sales associate” shall include any person who has been licensed after June 30, 1993,
employed or engaged by, or associated as an independent contractor with, or on behalf of, a real estate broker
to do or deal in any act, acts or transactions set out in the definition of a real estate broker and subject to an
additional forty-five-clock-hour postlicensing educational requirement to be completed within the twelve-month
license term. However, the Oklahoma Real Estate Commission shall promulgate rules for those persons called
into active military service for purposes of satisfying the postlicensing educational requirement. The license of
a provisional sales associate shall be nonrenewable unless the postlicensing requirement is satisfied prior to the
expiration date of the license. Further, the term sales associate and provisional sales associate shall be synony-mous
in meaning except where specific exceptions are addressed in the Oklahoma Real Estate License Code;
6. The term “successful completion shall include prelicense, postlicense, and distance education courses in
which an approved public or private school entity has examined the individual, to the satisfaction of the entity
and standards as established by the Commission, in relation to the course material presented during the offering.
7. The term “renewable license” shall refer to a sales associate who is a holder of such license or to a pro-visional
sales associate who has completed both the prelicense and postlicense educational requirements within
the required time period as stated in the Code;
8. The term “nonrenewable license” shall refer to a provisional sales associate who is the holder of such
license and who has not completed the postlicense educational requirement;
9. The term “surrendered license” shall refer to a real estate license which is surrendered, upon the request
of the licensee, due to a pending investigation or disciplinary proceedings;
10. The term “cancelled license” shall refer to a real estate license which is canceled, upon the request of the
licensee and approval of the Commission, due to a personal reason or conflict.
11. “Licensee” shall include any person who performs any act, acts or transactions set out in the definition
of a broker and licensed under the Oklahoma Real Estate License Code;
12. The word “Commission” shall mean the Oklahoma Real Estate Commission;
13. The word “person” shall include and mean every individual, partnership, association or corporation,
foreign or domestic;
14. Masculine words shall include the feminine and neuter, and the singular includes the plural; and
15. The word “associate” shall mean a broker associate, sales associate or provisional sales associate.
eStABlISHment OF COmmISSIOn
§858-201. Oklahoma Real estate Commission.
A. There is hereby re-created, to continue until July 1, 2013, in accordance with the provisions of the
Oklahoma Sunset Law, the Oklahoma Real Estate Commission, which shall consist of seven (7) members. The
Commission shall be the sole governmental entity, state, county or municipal, which shall have the authority to
regulate and issue real estate licenses in the State of Oklahoma.
B. All members of the Commission shall be citizens of the United States and shall have been residents of
the State of Oklahoma for at least three (3) years prior to their appointment.
C. Five members shall be licensed real estate brokers and shall have had at least five (5) years�� active
experience as real estate brokers prior to their appointment and be engaged full time in the real estate brokerage
business. One member shall be a lay person not in the real estate business, and one member shall be an active
representative of a school of real estate located within the State of Oklahoma and approved by the Oklahoma
Real Estate Commission.
D. No more than two members shall be ap pointed from the same congressional district according to the lat-est
congressional redistricting act. However, when congressional districts are redrawn, each member appointed
prior to July 1 of the year in which such modification becomes effective shall complete the current term of office
and appointments made after July 1 of the year in which such modification becomes effective shall be based
on the redrawn districts. No appointments may be made after July 1 of the year in which such modification
becomes effective if such appointment would result in more than two members serving from the same modified
district.
§858-202. Appointment; tenure; Vacancies; Removal.
A. Members of the Oklahoma Real Estate Commission shall be appointed by the Governor with the advice
and consent of the Senate.
B. Members of the commission shall serve until their terms expire. The terms of the Commission members
shall be for four (4) years and until their successors are appointed and qualified.
C. Each successor member and any vacancy which may occur in the membership of the Commission shall
be filled by appointment of the Governor with the advice and consent of the Senate.
D. The Governor may select appointees from a list of at least three qualified persons submitted by the
Oklahoma Association of Realtors, Incorporated.
E. Each person who shall have been appointed to fill a vacancy shall serve for the remainder of the term
for which the member whom he will succeed was appointed and until his successor, in turn, shall have been
appointed and shall have qualified.
F. Members of the Commission may be removed from office by the Governor for inefficiency, neglect of
duty or malfeasance in office in the manner provided by law for the removal of officers not subject to impeach-ment.
§858-203. Compensation of Commissioners. Each member of the Oklahoma Real Estate Commission
shall be entitled to receive travel expenses essential to performing the duties of his office, as pro vided in the
State Travel Reimbursement Act.
§858-204. Officers; employees; Bond required.
A. The members of the Commission, within thirty (30) days after their appointment, shall organize and
elect a Chairman and Vice Chairman. Annually thereafter the offices of Chairman and Vice Chairman shall be
attained through election by Commission members.
B. The Commission, as soon after the election of the Chairman and Vice Chairman as practicable, shall
employ a secretary-treasurer and such clerks and assistants as shall be deemed necessary to discharge the duties
imposed by the provisions of this Code, and shall determine their duties and fix their compensation subject to
the general laws of this state.
C. The Chairman of the Commission and in his absence the Vice Chairman, shall preside at all meetings of
the Commission and shall execute such duties as the Commission, by its rules, shall prescribe.
D. The secretary-treasurer shall keep a complete and permanent record of all proceedings of the Commission
and perform such other duties as the Commission shall prescribe.
§858-205. Revolving fund.
A. There is hereby created in the State Treasury a revolving fund for the Oklahoma Real Estate Commission,
to be designated the “Oklahoma Real Estate Commission Revolving Fund.” The fund shall consist of all mon-ies
received by the Oklahoma Real Estate Commission other than the Oklahoma Real Estate Education and
Recovery Fund fees or appropriated funds. The revolving fund shall be a continuing fund not subject to fiscal
year limitations and shall be under the control and management of the Oklahoma Real Estate Commission.
6
7
B. The Oklahoma Real Estate Commission may invest all or part of the monies of the fund in securities
offered through the “Oklahoma State Treasurer’s Cash Management Program”. Any interest or dividends accru-ing
from the securities and any monies generated at the time of redemption of the securities shall be deposited
in the General Operating Fund of the Oklahoma Real Estate Commission. All monies accruing to the credit
of the said fund are hereby appropriated and may be budgeted and expended by the Oklahoma Real Estate
Commission.
C. Expenditures from this fund shall be made pursuant to the purposes of this Code and without legislative
appropriation. Warrants for expenditures shall be drawn by the State Auditor based on claims signed by an
authorized employee or employees of the Oklahoma Real Estate Commission and approved for payment by the
director of State Finance.
D. The revolving fund shall be audited at least once each year by the State Auditor and Inspector.
§858-206. Suits; Service; Seals; Certified copies; location of office.
A. The Commission may sue and be sued in its official name, and service of summons upon the Secretary-
Treasurer of the Commission shall constitute lawful service upon the Commission.
B. The Commission shall have a seal which shall be affixed to all licenses, certified copies of records and
papers on file, and to such other instruments as the Commission may direct, and all courts shall take judicial
notice of such seal.
C. Copies of records and proceedings of the Commission and all papers on file in the office, certified under
the seal, shall be received as evidence in all courts of record.
D. The office of the Commission shall be at Oklahoma City, Oklahoma.
§858-207. Annual report of fees. The Commission shall at the close of each fiscal year file with the
Governor and State Auditor and Inspector a true and correct report of all fees charged, collected and received
during the previous fiscal year, and shall pay into the General Revenue Fund of the State Treasury ten percent
(10%) of the license fees collected and received during the fiscal year.
§858-208. powers and duties of the Commission. The Oklahoma Real Estate Commission shall have
the following powers and duties:
1. To promulgate rules, prescribe administrative fees by rule, and make orders as it may deem necessary or
expedient in the performance of its duties;
2. To administer examinations to persons who apply for the issuance of licenses;
3. To sell to other entities or governmental bodies, not limited to the State of Oklahoma, computer testing
and license applications to recover expended research and development costs;
4. To issue licenses in the form the Commission may prescribe to persons who have passed examinations
or who otherwise are entitled to such licenses;
5. To issue licenses to and regulate the activities of real estate brokers, provisional sales associates, sales
associates, branch offices, nonresidents, associations, corporations, and partnerships;
6. Upon showing good cause as provided for in The Oklahoma Real Estate License Code, to discipline
licensees, instructors and real estate school entities by:
a. reprimand,
b. probation for a specified period of time,
c. required education in addition to the educational requirements provided by Section 858-307.2 of
this title,
d. suspending real estate licenses and approvals for specified periods of time,
e. revoking real estate licenses and approvals,
f. imposing administrative fines pursuant to Section 858-402 this title, or
g. any combination of discipline as provided by subparagraphs a through f of this paragraph;
7. Upon showing good cause, to modify any sanction imposed pursuant to the provisions of this section and
to reinstate licenses;
8. To conduct, for cause disciplinary proceedings;
9. To prescribe penalties as it may deem proper to be assessed against licensees for the failure to pay the
license renewal fees as provided for in this Code;
10. To initiate the prosecution of any person who violates any of the provisions of this Code;
11. To approve instructors and organizations offering courses of study in real estate and to further require
them to meet standards to remain qualified as is necessary for the administration of this Code;
12. To contract with attorneys and other professionals to carry out the functions and purposes of this Code;
13. To apply for injunctions and restraining orders for violations of the Code or the rules of the Commission;
14. To create an Oklahoma Real Estate Contract Form Committee by rule that will be required to draft and
revise real estate purchase and/or lease contracts and any related addenda for voluntary use by real estate licensees.
15. To enter into contracts and agreements for the payment of food and other reasonable expenses as autho-rized
in the State Travel Reimbursement Act necessary to host, conduct, or participate in meetings or training
sessions as is reasonable for the administration of this Code; and
16. To conduct an annual performance review of the Executive Director and submit the report to the
Legislature; and
17. To enter into reciprocal agreements with other real estate licensing regulatory jurisdictions with equiva-lent
licensing, education and examination requirements.
§858-209. Compliance with the Administrative procedures Act.
A. In the exercise of all powers and the performance of all duties provided in this Code, the Commission
shall comply with the procedures provided in the Administrative Procedures Act. Appeals shall be taken as
provided in said act.
B. The Commission may designate and employ a hearing examiner or examiners who shall have the power
and authority to conduct such hearings in the name of the Commission at any time and place subject to the pro-visions
of this section and any applicable rules or orders of the Commission. No person shall serve as a hearing
examiner in any proceeding in which any party to the proceeding is, or at any time has been, a client of the
hearing examiner or of any firm, partnership or corporation with which the hearing examiner is, or at any time
has been, associated. No person who acts as a hearing examiner shall act as attorney for the Commission in any
court proceeding arising out of any hearing in which he acted as hearing examiner.
C. In any hearing before the Commission, the burden of proof shall be upon the moving party.
lICenSInG
§858-301. license required; exceptions. It shall be unlawful for any person to act as a real estate
licensee, or to hold himself or herself out as such, unless the person shall have been licensed to do so under
this Code. However, nothing in this section shall:
1. Prevent any person, partnership, trust, association or corporation, or the partners, officers or employees of
any partnership, trustees or beneficiaries of any trust, association or corporation, from acquiring real estate for its
own use, nor shall anything in this section prevent any person, partnership, trust, association or corporation, or
the partners, officers or employees of any person, partnership, trustees or beneficiaries of any trust, association
or corporation, as owner, lessor or lessee of real estate, from selling, renting, leasing, exchanging, or offering
to sell, rent, lease or exchange, any real estate so owned or leased, or from performing any acts with respect to
such real estate when such acts are performed in the regular course of, or as an incident to, the management,
ownership or sales of such real estate and the investment therein;
2. Apply to persons acting as the attorney-in-fact for the owner of any real estate authorizing the final con-summation
by performance of any contract for the sale, lease or exchange of such real estate;
3. In any way prohibit any attorney-at-law from performing the duties of the attorney as such, nor shall this
Code prohibit a receiver, trustee in bankruptcy, administrator, executor, or his or her attorney, from performing
his or her duties, or any person from performing any acts under the order of any court, or acting as a trustee
under the terms of any trust, will agreement or deed of trust;
4. Apply to any person acting as the resident manager for the owner or an employee acting as the resident
manager for a licensed real estate broker managing an apartment building, duplex, apartment complex or court,
when such resident manager resides on the premises and is engaged in the leasing of property in connection with
the employment of the resident manager;
5. Apply to any person who engages in such activity on behalf of a corporation or governmental body, to
acquire easements, rights-of-way, leases, permits and licenses, including any and all amendments thereto, and
other similar interests in real estate, for the purpose of, or facilities related to, transportation, communication
services, cable lines, utilities, pipelines, or oil, gas, and petroleum products;
6. Apply to any person who engages in such activity in connection with the acquisition of real estate on
behalf of an entity, public or private, which has the right to acquire the real estate by eminent domain;
7. Apply to any person who is a resident of an apartment building, duplex, or apartment complex or court,
when the person receives a resident referral fee. As used in this paragraph, a “resident referral fee” means a
nominal fee not to exceed One Hundred Dollars ($100.00), offered to a resident for the act of recommending
the property for lease to a family member, friend, or coworker; or
8. Apply to any person or entity managing a transient lodging facility. For purposes of this paragraph,
“transient lodging facility” means a furnished room or furnished suite of rooms which is rented to a person on
a daily basis, not as a principal residence, for a period less than thirty (30) days.
8
9
§858-301.1. eligibility for license—Applicants convicted of criminal offenses—time periods for dis-qualification—
procedure
A. Any applicant convicted of any crimes defined in Section 13.1 of Title 21 of the Oklahoma Statutes shall
not be eligible to obtain a real estate license within twenty (20) years of the completion of any criminal sentence,
including parole and probation.
B. Any applicant convicted of a felony involving forgery, embezzlement, obtaining money under false
pretense, extortion, conspiracy to defraud, fraud, or any other similar offense or offenses shall not be eligible
to obtain a real estate license within ten (10) years of the completion of any criminal sentence, including parole
and probation.
C. Any applicant convicted of any other felony shall not be allowed to obtain a real estate license within
five (5) years of the completion of any criminal sentence, including parole and probation.
D. For purposes of this section, the term “applicant” shall mean any person making an application for origi-nal
licensure as a provisional sales associate, sales associate, broker associate, or broker and shall not apply to
any licensee seeking renewal of a current license.
E. Any applicant with a felony conviction shall not automatically receive a license after the timelines set
forth in this section, but may be licensed in accordance with the licensing provisions set forth in the Oklahoma
Real Estate License Code and Rules.
§858-301.2. notification of Commission of conviction or plea of guilty or nolo contendere to felony
offense
Every licensed person pursuant to the provisions of the Oklahoma Real Estate License Code shall notify the
Commission in writing of the conviction or plea of guilty or nolo contendere to any felony offense within thirty
(30) days after the plea is taken and also within thirty (30) days of the entering of an order of judgment and
sentencing.
§858-302. eligibility for license as real estate provisional sales associate—Qualifications—
examination.
A. Any person of good moral character, eighteen (18) years of age or older, and who shall submit to the
Commission evidence of successful completion of ninety (90) clock hours or its equivalent as determined by
the Commission of basic real estate instruction in a course of study approved by the Commission, may apply to
the Commission to take an examination for the purpose of securing a license as a provisional sales associate.
B. Application shall be made upon forms prescribed by the Commission and shall be accompanied by an
examination fee as provided for in this Code and all information and documents the Commission may require.
C. The applicant shall appear in person before the Commission for an examination which shall be in the
form and inquire into the subjects the Commission shall prescribe.
D. If it shall be determined that the applicant shall have passed the examination, received final approval of the
application, and paid the appropriate license fee provided for in this Code along with the Oklahoma Real Estate
Education and Recovery Fund fee, the Commission shall issue to the applicant a provisional sales associate license.
E. Following the issuance of a provisional sales associate license, the licensee shall then submit to the
Commission, prior to the expiration of the provisional license, evidence of successful completion of forty-five
(45) clock hours or its equivalent as determined by the Commission of posteducation real estate instruction in a
course(s) of study approved by the Commission. A provisional sales associate who fails to submit evidence of
compliance with the posteducation requirement pursuant to this section, prior to the first expiration date of the
provisional sales associate license, shall not be entitled to renew such license for another license term. However,
the Commission shall promulgate rules for those persons called into active military service for purposes of sat-isfying
the posteducation requirement.
§858-303. eligibility for license as real estate broker or broker associate—Qualifications—
examination.
A. Any person of good moral character who holds a renewable sales associate license and who shall have
had two (2) years’ experience, within the previous five (5) years, as a licensed real estate sales associate or
provisional sales associate, or its equivalent, and who shall submit to the Commission evidence of successful
completion of ninety (90) clock hours or its equivalent as determined by the Commission of advanced real
estate instruction in a course of study approved by the Commission, which instruction shall be in addition to
any instruction required for securing a license as a real estate sales associate may apply to the Commission, to
take an examination for the purpose of securing a license as a real estate broker or broker associate.
B. Application shall be made upon forms prescribed by the Commission and shall be accompanied by an
examination fee as provided for in this Code and all information and documents the Commission may require.
C. The applicant shall appear in person before the Commission for an examination which shall be in the
form and shall inquire into the subjects which the Commission shall prescribe.
D. If it shall be determined that the applicant shall have passed the examination, received final approval of
the application, and paid the appropriate license fee provided for in this Code along with the Oklahoma Real
Estate Education and Recovery Fund fee, the Commission shall issue to the applicant a broker or broker associ-ate
license.
§858-303B. Accounting of expenditure for services. Any real estate broker who charges and collects
any fees in advance of the services provided by the broker shall provide a detailed accounting of expenditures
to the person such services are performed for within ten (10) days after the time specified to perform such
services or upon written request from person for whom services are performed for, but no longer than one (1)
year from date of contract for such services.
§858-304. Certified transcript from accredited institution as evidence of successful completion of
basic or advanced real estate instruction to meet eligibility for license—Courses to be taught in real
estate schools.
A. A certified transcript from an institution of higher education, accredited by the Oklahoma State Regents
for Higher Education or the corresponding accrediting agency of another state, certifying to the successful
completion of a six-academic-hour basic course of real estate instruction for which college credit was given,
shall be prima facie evidence of successful completion of the clock hours of basic real estate instruction for a
provisional sales associate applicant as required in Section 858-302 of this Code.
B. A certified transcript from an institution of higher education, accredited by the Oklahoma State Regents
for Higher Education or the corresponding accrediting agency of another state, certifying to the successful
completion of a three-academic-hour course of real estate instruction consisting of the provisional sales associ-ate
postlicensing educational requirements for which college credit was given, shall be prima facie evidence of
successful completion of the clock hours of real estate instruction for the postlicense requirement as required in
Section 858-302 of this title.
C. A certified transcript from an institution of higher education, accredited by the Oklahoma State Regents
for Higher Education or the corresponding agency of another state, certifying to the successful completion of a
six-academic-hours advanced course of real estate instruction for which college credit was given, shall be prima
facie evidence of successful completion of the clock hours of advanced real estate instruction as required in
Section 858-303 of this Code for a broker applicant.
D. Each school, whether public or private other than institutions of higher education, must present to the
Commission its syllabus of instruction, prior to the approval of such school.
§858-305. licensing of associations, Corporations and partnerships.
A. The Oklahoma Real Estate Commission may license as a real estate broker any association or corpora-tion
in which the managing member or managing officer holds a license as a real estate broker, as defined in
this Code, and in which every member, officer or employee who acts as a real estate broker or real estate sales
associate holds a license for that purpose, as defined in this Code. The Commission may license as a real estate
broker any partnership in which each partner holds a license as a real estate broker, as defined in this Code.
B. Application for licenses described in this section shall be made on forms prescribed by the Commission
and shall be issued pursuant to rules promulgated by the Commission.
§858-306. licensing of nonresidents.
A. Any person who desires to perform licensed activities in Oklahoma but maintains a place of business
outside Oklahoma may obtain an Oklahoma nonresident license by complying with all applicable provisions of
this Code including the successful completion of the applicable Oklahoma state portion of the real estate examina-tion.
B. The nonresident shall give written consent that actions and suits at law may be commenced against the
nonresident licensee in any county in this state wherein any cause of action may arise or be claimed to have
arisen out of any transaction occurring in the county because of any transactions commenced or con ducted by
the nonresident or the nonresident’s associates or employees in such county. The nonresident shall further, in
writing, appoint the secretary-treasurer of said Commission as service agent to receive service of summons for
the nonresident in all of such actions and service upon the secretary-treasurer of such Commission shall be held
to be sufficient to give the court jurisdiction over the nonresident in all such actions.
C. A broker who is duly licensed in another state and who has not obtained an Oklahoma nonresident license
may enter a cooperative brokerage agreement with a licensed real estate broker in this state. If, however, the bro-ker
desires to perform licensed activities in this state, the broker must obtain an Oklahoma nonresident license.
§858-307.1. Issuance of license—term—Fees.
A. The Oklahoma Real Estate Commission shall issue every real estate license for a term of thirty-six (36)
months with the exception of a provisional sales associate license whose license term shall be for twelve (12)
months. License terms shall not be altered except for the purpose of general reassignment of the terms which
might be necessitated for maintaining an equitable staggered license term system. The expiration date of the
10
11
license shall be the end of the twelfth or thirty-sixth month, whichever is applicable, including the month of
issuance. Fees shall be promulgated by rule, payable in advance, and nonrefundable.
B. If a license is issued for a period of less than thirty-six (36) months, the license fee shall be prorated to
the nearest dollar and month. If a real estate sales associate or a provisional sales associate shall qualify for a
license as a real estate broker, then the real estate provisional sales associate’s or sales associate’s license fee for
the remainder of the license term shall be prorated to the nearest dollar and month and credited to such person’s
real estate broker’s license fee.
§858-307.2. Renewal of license—Continuing education requirement.
A. Beginning July 1, 2004, as a condition of renewal or reactivation of the license, each licensee with the
exception of those exempt as set out in this section shall submit to the Commission evidence of completion of
a specified number of hours of continuing education courses approved by the Commission, within the thirty-six
(36) months immediately preceding the term for which the license is to be issued. The number of hours, or its
equivalent, required for each licensed term shall be determined by the Commission and promulgated by rule.
Each licensee shall be required to complete and include as part of said continuing education a certain number
of required subjects as prescribed by rule.
B. The continuing education courses required by this section shall be satisfied by courses approved by the
Commission and offered by:
1. The Commission;
2. An area vocational-technical school;
3. A college or university;
4. A private school;
5. The Oklahoma Association of Realtors, the National Association of Realtors, or any
affiliate thereof;
6. The Oklahoma Bar Association, American Bar Association, or any affiliate thereof; or
7. An education provider.
C. The Commission shall maintain a list of courses which are approved by the Commission.
D. The Commission shall not issue an active renewal license or reactivate a license unless the continuing
education requirement set forth in this section is satisfied within the prescribed time period.
E. The provisions of this section do not apply:
1. During the period a license is on inactive status;
2. To a licensee who holds a provisional sales associate license;
3. To a nonresident licensee licensed in this state if the licensee maintains a current license in another
state and has satisfied the continuing education requirement for license renewal in that state; or
4. To a corporation, association partnership or branch office.
§858-307.3. Application for reissuance of license after revocation. A person shall not be permitted
to file an application for reissuance of a license after revocation of the license within three (3) years of the
effective date of revocation.
§858-307.4. Criminal history record — Investigation - Costs
A. Prior to the issuance of a license pursuant to this Code, each applicant shall submit to a national criminal
history record check, as defined by section 150.9 of Title 74 of the Oklahoma Statutes.
B. Upon receipt by the Commission of criminal history, the Commission shall conduct an investigation in
accordance with rules promulgated by the Commission.
C. The costs associated with the national criminal history record check shall be paid by the applicant.
§858-308. Current list of licensees. In the interest of the public, the Commission shall keep a current list
of the names and addresses of all licensees, and of all persons whose licenses have been sus pended or revoked,
together with such information relative to the enforcement of the provisions of this Code as it may deem advis-able
and desirable. Such listings and information shall be a matter of public record.
§858-309. Inactive status for licensees.
A. The Commission may place a license on inactive status when the request therefor is accompanied by
sufficient reason; however, such status shall not relieve the licensee from paying the required fees. The request
for inactive status shall be in writing, on forms furnished by the Commission.
B. During active military service, any licensee shall not be required to pay the fees but shall request the
inactive status prior to each term for which the license is to be issued.
§858-310. location of office; licenses for branch offices.
A. A real estate broker shall maintain a specific place of business. Such place of business shall comply with
all local laws and shall be available to the public during reasonable business hours.
B. If a real estate broker maintains more than one place of business and the additional location is an exten-sion
of the main office, a branch office license must be obtained for each additional location. Each branch office
shall be under the direction and supervision of a separate broker and shall be considered a managing broker of
the branch office. Application shall be made upon forms as prescribed by the Commission.
§858-311. Action not maintainable without allegation and proof of license. No person, partnership,
association or corporation acting as a real estate licensee shall bring or maintain an action in any court in this
state for the recovery of a money judgment as compensation for services rendered in listing, buying, selling,
renting, leasing or exchanging of any real estate without alleging and proving that such person, partnership,
association or corporation was licensed when the alleged cause of action arose.
§858-312. Investigations—Cause for suspension or revocation of license. The Oklahoma Real Estate
Commission may, upon its own motion, and shall, upon written complaint filed by any person, investigate
the business transactions of any real estate licensee, and may, upon showing good cause, impose sanctions as
provided for in Section 858-208 of this title. Cause shall be established upon the showing that any licensee
has performed, is performing, has attempted to perform, or is attempting to perform any of the following acts:
1. Making a materially false or fraudulent statement in an application for a license;
2. Making substantial misrepresentations or false promises in the conduct of business, or through real estate
licensees, or advertising, which are intended to influence, persuade, or induce others;
3. Failing to comply with the requirements of Sections 858-351 through 858-363 of this title;
4. Accepting a commission or other valuable consideration as a real estate associate for the performance of
any acts as an associate, except from the real estate broker with whom the associate is associated;
5. Representing or attempting to represent a real estate broker other than the broker with whom the associate
is associated without the express knowledge and consent of the broker with whom the associate is associated;
6. Failing, within reasonable time, to account for or to remit any monies, documents, or other property com-ing
into possession of the licensee which belong to others;
7. Paying a commission or valuable consideration to any person for acts or services performed in violation
of the Oklahoma Real Estate License Code;
8. Any other conduct which constitutes untrustworthy, improper, fraudulent, or dishonest dealings;
9. Disregard or violating any provision of the Oklahoma Real Estate License Code or rules promulgated by
the Commission;
10. Guaranteeing or having authorized or permitted any real estate licensee to guarantee future profits
which may result from the resale of real estate;
11. Advertising or offering for sale, rent or lease any real estate, or placing a sign on any real estate offering
it for sale, rent or lease without the consent of the owner or the owner’s authorized representative;
12. Soliciting, selling, or offering for sale real estate by offering “free lots,” conducting lotteries or contests,
or offering prizes for the purpose of influencing a purchaser or prospective purchaser of real estate;
13. Accepting employment or compensation for appraising real estate contingent upon the reporting of a
predetermined value or issuing any appraisal report on real estate in which the licensee has an interest unless
the licensee’s interest is disclosed in the report. All appraisals shall be in compliance with the Oklahoma real
estate appraisal law, and the person performing the appraisal or report shall disclose to the employer whether the
person performing the appraisal or report is licensed or certified by the Oklahoma Real Estate Appraiser Board;
14. Paying a commission or any other valuable consideration to any person for performing the services of a
real estate licensee as defined in the Oklahoma Real Estate License Code who has not first secured a real estate
license pursuant to the Oklahoma Real Estate License Code;
15. Unworthiness to act as a real estate licensee, whether of the same or of a different character as specified
in this section, or because the real estate licensee has been convicted of, or pleaded guilty or nolo contendere to,
a crime involving moral turpitude;
16. Commingling with the licensee’s own money or property the money or property of others which is
received and held by the licensee, unless the money or property of others is received by the licensee and held in
an escrow account that contains only money or property of others;
17. Conviction in a court of competent jurisdiction of having violated any provision of the federal fair hous-ing
laws, 42 U.S.C. Section 3601 et seq.;
18. Failure by a real estate broker, after the receipt of a commission, to render an accounting to and pay to a
real estate licensee the licensee’s earned share of the commission received;
19. Conviction in a court of competent jurisdiction in this or any other state of the crime of forgery, embez-zlement,
obtaining money under false pretenses, extortion, conspiracy to defraud, fraud, or any similar offense
or offenses, or pleading guilty or nolo contendere to any such offense or offenses;
12
13
20. Advertising to buy, sell, rent, or exchange any real estate without disclosing that the licensee is a real
estate licensee;
21. Paying any part of a fee, commission, or other valuable consideration received by a real estate licensee
to any person not licensed;
22. Offering, loaning, paying, or making to appear to have been paid, a down payment or earnest money
deposit for a purchaser or seller in connection with the real estate transaction; and
23. Violation of the Residential Property Condition Disclosure Act.
§858-312.1. Certain persons prohibited from participation in real estate business.
A. No person whose license is revoked or suspended shall operate directly or indirectly or have a partici-pating
interest, or act as a member, partner or officer, in any real estate business, corporation, association or
partnership that is required to be licensed pursuant to this Code.
B. No person whose license is cancelled, surrendered or lapsed pending investigation or disciplinary pro-ceedings
shall operate directly or indirectly or have a participating interest, or act as a member, partner or officer,
in any real estate business, corporation, association or partnership that is required to be licensed pursuant to this
Code until such time as the Commission makes a determination on the pending investigation or disciplinary
proceedings and approves an application for license.
§858-313 Confidential materials of the Commission The following materials of the Commission are
confidential and not public records:
1. Examinations conducted by the Commission and materials related to the examinations; and
2. Educational materials submitted to the Commission by a person or entity seeking approval and/or accep-tance
of a course of study.
BROKeR RelAtIOnSHIpS
§858-351. Definitions. Unless the context clearly indicates otherwise, as used in Section 858-351 through
858-363 of this title:
1. “Broker” means a real estate broker as defined in Section 858-102 of this title, and means, further, except
where the context refers only to a real estate broker, an associated broker associate, sales associate, or provi-sional
sales associate authorized by a real estate broker to provide brokerage services;
2. “Party” means a person who is a seller, buyer, landlord, or tenant or a person who is involved in an option
or exchange;
3. “Single-party broker” means a broker who has entered into a written brokerage agreement with a party
in a transaction to provide services for the benefit of that party;
4. “Transaction” means any or all of the steps that may occur by or between parties when a party seeks
to buy, sell, lease, rent, option or exchange real estate and at least one party enters into a broker relationship
subject to this title. Such steps may include, without limitation, soliciting, advertising, engaging a broker to list
a property, showing or viewing a property, making offers or counteroffers, entering into agreements and closing
such agreements; and
5. “Transaction broker” means a broker who provides services by assisting a party in a transaction without
being an advocate for the benefit of that party.
§858-352. Written brokerage agreement. A broker may enter into a written brokerage agreement to
provide services as either a single-party broker or a transaction broker. If a broker does not enter into a
written brokerage agreement with a party, the broker shall perform services only as a transaction broker. All
brokerage agreements shall be deemed to incorporate as material terms the duties and responsibilities set forth
in subsection A of Section 858-353 or subsection B of Section 858-354 of this title, based upon whether the
relationship established by the brokerage agreement is a transaction broker relationship or single-party broker
relationship.
§858-353. transaction broker—Duties and responsibilities.
A. A transaction broker shall have the following duties and responsibilities, which are mandatory and may
not be abrogated or waived by a transaction broker:
1. To treat all parties with honesty and exercise reasonable skill and care;
2. To be available to:
a. receive all written offers and counteroffers,
b. reduce offers or counteroffers to a written form upon request of any party to a transaction, and
c. present timely such written offers and counteroffers,
3. To inform in writing the party for whom the broker is providing services when an offer is made that the
party will be expected to pay certain closing costs, brokerage service costs and approximate amount of said
costs;
4. To account timely for all money and property received by the broker,
5. To keep confidential information received from a party confidential as required by Section 858-357 of
this title;
6. To disclose information pertaining to the property as required by the Residential Property Condition
Disclosure Act; and
7. To comply with all requirements of the Oklahoma Real Estate License Code and all applicable statutes
and rules.
B. Except as provided in Section 858-358 of this title, such duties and responsibilities set forth in this section
shall be performed by a transaction broker if such duties and responsibilities relate to the steps of the transaction
which occur while there is a broker relationship.
C. Nothing in this section requires or prohibits a transaction broker from charging a separate fee or other
compensation for each duty or other services provided during a transaction.
D. If a transaction broker intends to perform fewer services than those required to complete a transaction,
written disclosure shall be provided to the party for whom the broker is providing services. Such disclosure shall
include a description of those steps in the transaction for which the broker will not perform services, and also
state that a broker assisting the other party in the transaction is not required to provide assistance with these steps
in any manner.
§858-354. Single-party broker—Duties and responsibilities.
A. A broker shall enter into a written brokerage agreement prior to providing services as a single-party broker,
which shall be deemed to include, and which may not abrogate or waive, the mandatory duties and responsibili-ties
set forth in this section.
B. The single-party broker shall have the following duties and responsibilities:
1. To treat all parties with honesty and exercise reasonable skill and care;
2. To be available to:
a. receive all written offers and counteroffers,
b. reduce offers or counteroffers to a written form upon request of any party to a transaction,
c. present timely all written offers and counteroffers;
3. To inform in writing the party for whom the broker is providing services when an offer is made that the
party will be expected to pay certain closing costs, brokerage service costs and approximate amount of said
costs;
4. To keep the party for whom the single-party broker is performing services informed regarding the trans-action;
5. To account timely for all money and property received by the broker;
6. To keep confidential information received from a party confidential as required by Section 858-357 of
this title;
7. To perform all brokerage activities for the benefit of the party for whom the single-party broker
is performing services unless prohibited by law;
8. To disclose information pertaining to the property as required by the Residential Property
Condition Disclosure Act;
9. To obey the specific directions of the party for whom the single-party broker is performing services that
are not contrary to applicable statutes and rules or contrary to the terms of a contract between the parties to the
transaction; and
10. To comply with all requirements of the Oklahoma Real Estate License Code and all applicable statutes
and rules.
C. In the event a broker who is a single-party broker for a buyer or a tenant receives a fee or compensation
based on a selling price or lease cost of a transaction, such receipt does not constitute a breach of duty or obliga-tion
to the buyer or tenant if fully disclosed to the buyer or tenant in the written brokerage agreement.
D. Except as provided in Section 858-358 of this title, such duties and responsibilities set forth in this section
shall be performed by a single-party broker if such duties and responsibilities relate to the steps of the transaction
which occur while there is a broker relationship.
E. Nothing in this section requires or prohibits a single-party broker from charging a separate fee or other
compensation for each duty or other services provided during a transaction.
F. If a single-party broker intends to perform fewer services than those required to complete a transaction,
written disclosure shall be provided to the party for whom the broker is providing services. Such disclosure shall
include a description of those steps in the transaction for which the broker will not perform services, and also
state that the broker assisting the other party in the transaction is not required to provide assistance with these
steps in any manner.
14
15
§858-355. Alternative relationships entered into where broker assists one or both parties—Written
disclosure—Written consent—Contents of brokerage agreement—Withdrawal by broker—Referral
fees—Cooperation with other brokers.
A. When assisting one party to a transaction, a broker shall enter into one of the following relationships:
1. As a transaction broker without a written brokerage agreement;
2. As a transaction broker through a written brokerage agreement; or
3. As a single-party broker through a written brokerage agreement.
B. When assisting both parties to a transaction, a broker may enter into the following relationships:
1. As a transaction broker for both parties;
2. As a single-party broker for one party and as a transaction broker for the other party. In this event, a
broker shall disclose in writing to the party for whom the broker is providing services as a transaction broker,
the difference between a transaction broker and a single-party broker, and that the broker is a single-party broker
for the other party and performs services for the benefit of the other party in the transaction; or
3. As a transaction broker where the broker has previously entered into a written brokerage agreement
to provide services as a single-party broker for both parties. In this event, the broker shall obtain the written
consent of each party before the broker begins to perform services as a transaction broker. The written consent
may be included in the written brokerage agreement or in a separate document and shall contain the following
information:
a. a description of the transaction or type of transactions that might occur in which the single-party
broker seeks to obtain consent to become a transaction broker,
b. a statement that in such transactions the single-party broker would perform services for more than
one party whose interest could be different or even adverse and that such transactions require the broker
to seek the consent of each party to such transactions to permit a change in the brokerage relationship,
c. a statement that by giving consent in such transactions:
(1) the party will allow the broker to change the broker’s relationship from performing services as a
single-party broker to performing services as a transaction broker,
(2) the broker will no longer provide services for the benefit of the party, but may only assist in such
transactions,
(3) the broker will not be obligated to obey the specific directions of the party but will assist all parties
to such transactions,
(4) the party will not be vicariously liable for the acts of the broker and associated associates, and
(5) the broker’s obligation to keep confidential information received from the party confidential is not
affected,
d. a statement that the party is not required to consent to the change in the brokerage relationships in
such transactions and may seek independent advice,
e. a statement that the consent of the party to change the brokerage relationship in such transactions has
been given voluntarily and that the written consent has been read and understood by the party, and
f. a statement that the party authorizes the broker to change the brokerage relationship in such transac-tions
and to assist all parties to such transactions as a transaction broker.
C. 1. If neither party gives consent as described in paragraph 3 of subsection B of this section, the broker
shall withdraw from providing services to all but one party to a transaction. If the broker refers the party for
whom the broker is no longer providing services to another broker, the broker shall not receive a fee for referring
the party unless written disclosure is made to all parties.
2. If only one party gives consent as described in paragraph 3 of subsection B of this section, the broker may
act as a transaction broker for the consenting party and continue to act as a single-party broker for the noncon-senting
party. In this event, the broker shall disclose in writing to the consenting party that the broker remains a
single-party broker for the nonconsenting party and performs services for the benefit of the nonconsenting party.
D. A broker may cooperate with other brokers in a transaction. Under Sections 858-351 through 858-363
of this act, a broker shall not be an agent, subagent, or dual agent and an offer of subagency shall not be made
to other brokers.
§858-356. Disclosures—Confirmation in writing.
A. Prior to the signing by a party of a contract to purchase, lease, option or exchange real estate, a broker
who is performing services as a transaction broker without a written brokerage agreement shall describe and
disclose in writing the broker’s role to the party.
B. Prior to entering into a written brokerage agreement as either a transaction broker or single-party broker,
the broker shall describe and disclose in writing the broker’s relationship to the party.
C. A transaction broker shall disclose to the party for whom the transaction broker is providing services that
the party is not vicariously liable for the acts or omissions of the transaction broker.
D. A single-party broker shall disclose to the party for whom the single-party broker is providing services
that the party may be vicariously liable for the acts or omissions of a single-party broker.
E. The disclosure required by this section and the consent required by Section 858-355 of this act must
be confirmed by each party in writing in a separate provision, incorporated in or attached to the contract to
purchase, lease, option, or exchange real estate. In those cases where a broker is involved in a transaction but
does not prepare the contract to purchase, lease, option, or exchange real estate, compliance with the disclosure
requirements must be documented by the broker.
§858-357. Confidential information. The following information shall be considered confidential and
shall not be disclosed by a broker without the consent of the party disclosing the information unless consent
to disclosure is granted by the party disclosing the information, the disclosure is required by law, or the
information is made public or becomes public as the result of actions from a source other than the broker:
1. That a party is willing to pay more or accept less than what is being offered;
2. That a party is willing to agree to financing terms that are different from those offered; and
3. The motivating factors of the party purchasing, selling, leasing, optioning, or exchanging the property.
§858-358. Duties of broker following termination, expiration, or completion of performance.
Except as may be provided in a written brokerage agreement between the broker and a party to a transaction,
the broker owes no further duties or responsibilities to the party after termination, expiration, or completion
of performance of the transaction, except:
1. To account for all monies and property relating to the transaction; and
2. To keep confidential all confidential information received by the broker during the broker’s relationship
with a party.
§858-359. payment to broker not determinative of relationship. The payment or promise of payment
or compensation by a party to a broker does not determine what relationship, if any, has been established
between the broker and a party to a transaction.
§858-360. Abrogation of common law principles of agency—Remedies cumulative. The duties
and responsibilities of a broker specified in Sections 858-351 through 858-363 of this act shall replace and
abrogate the fiduciary or other duties of a broker to a party based on common law principles of agency. The
remedies at law and equity supplement the provisions of Sections 858-351 through 858-363 of this act.
§858-361. use of word “agent” in trade name and as general reference. A real estate broker and the
associates of a real estate broker are permitted under the provisions of Sections 858-351 through 858-363 of
this title to use the word “agent” in a trade name and as a general reference for designating themselves as real
estate licensees.
§858-362. Vicarious liability for acts or omissions of real estate licensee. A party to a real estate transac-tion
shall not be vicariously liable for the acts or omissions of a real estate licensee who is providing services as
a transaction broker under Section 858-351 through 858-363 of this act.
§858-363. Associates of real estate broker—Authority. Each broker associate, sales associate, and provi-sional
sales associate shall be associated with a real estate broker. A real estate broker may authorize associates
to provide brokerage services in the name of the real estate broker as permitted under the Oklahoma Real Estate
License Code, which may include the execution of written agreements; however, such associates shall not refer
to themselves as a broker.
penAltIeS
§858-401. punishment for violations.
A. In addition to any other penalties provided by law, any person unlicensed pursuant to The Oklahoma Real
Estate License Code who shall willingly and knowingly violate any provision of this Code, upon conviction,
shall be guilty of a misdemeanor punishable by a fine of not more than One Thousand Dollars ($1,000.00), or
by imprisonment in the county jail for not more than six (6) months, or by both such fine and imprisonment.
B. In addition to any civil or criminal actions authorized by law, whenever, in the judgment of the Oklahoma
Real Estate Commission, any unlicensed person has engaged in any acts or practices which constitute a violation
of the Oklahoma Real Estate License Code, the Commission may:
1. After notice and hearing, and upon finding a violation of the Code, impose a fine of not more than Five
Thousand Dollars ($5,000.00) or the amount of the commission or commissions earned, whichever is greater
for each violation of the Code for unlicensed activity;
2. Make application to the appropriate court for an order enjoining such acts or practices, and upon a show-ing
by the Commission that such person has engaged in any such acts or practices, an injunction, restraining
order, or such other order as may be appropriate shall be granted by such court, without bond; or
3. Impose administrative fines pursuant to this subsection which shall be enforceable in the district courts
of this state.
16
17
C. Notices and hearings required by this section and any appeals from orders entered pursuant to this section
shall be in accordance with Administrative Procedures Act.
D. Such funds as collected pursuant to this section shall be deposited in the Oklahoma Real Estate Education
and Recovery Fund.
§858-402. Administrative Fines.
A. The Oklahoma Real Estate Commission may impose administrative fines on any licensee licensed pursu-ant
to The Oklahoma Real Estate License Code as follows:
1. Any administrative fine imposed as a result of a violation of this Code or the rules of the Commission
shall not:
a. be less than One Hundred Dollars ($100.00) and shall not exceed Two Thousand Dollars ($2,000.00)
for each violation of this Code or the rules of the Commission, or
b. exceed Five Thousand Dollars ($5,000.00) for all violations resulting from a single incident or trans-action;
2. All administrative fines shall be paid within thirty (30) days of notification of the licensee by the
Commission of the order of the Commission imposing the administrative fine;
3. The license may be suspended until any fine imposed upon the licensee by the Commission is paid;
4. If fines are not paid in full by the licensee within thirty (30) days of the notification by the Commission
of the order, the fines shall double and the licensee shall have an additional thirty-day period. If the doubled
fine is not paid within the additional thirty-day period, the license shall automatically be revoked; and
5. All monies received by the Commission as a result of the imposition of the administrative fine provided
for in this section shall be deposited in the Oklahoma Real Estate Education and Recovery Fund, created pursu-ant
to Section 858-601 of this title.
B. The administrative fines authorized by this section may be in addition to any other criminal penalties or
civil actions provided for by law.
mISCellAneOuS
§858-513. psychologically impacted real estate—Factors included—nondisclosure of facts—
Certain actions prohibited—Disclosure in certain circumstances.
A. The fact or suspicion that real estate might be or is psychologically impacted, such impact being the result
of facts or suspicions, including but not limited to:
1. that an occupant of the real estate is, or was at any time suspected to be infected, or has been infected,
with Human Immunodeficiency Virus or diagnosed with Acquired Immune Deficiency Syndrome, or other
disease which has been determined by medical evidence to be highly unlikely to be transmitted through the
occupancy of a dwelling place; or
2. that the real estate was, or was at any time suspected to have been the site of a suicide, homicide or other
felony,
is not a material fact that must be disclosed in a real estate transaction.
B. No cause of action shall arise against an owner of real estate or any licensee assisting the owner for the
failure to disclose to the purchaser or lessee of such real estate or any licensee assisting the purchaser or lessee
that such real estate was psychologically impacted as provided for in subsection A of this section.
C. Notwithstanding the fact that this information is not a material defect or fact, in the event that a purchaser
or lessee, who is in the process of making a bona fide offer, advises the licensee assisting the owner, in writing,
that knowledge of such factor is important to the person’s decision to purchase or lease the property, the licensee
shall make inquiry of the owner and report any findings to the purchaser or lessee with the consent of the owner
and subject to and consistent with applicable laws of privacy; provided further, if the owner refuses to disclose,
the licensee assisting the owner shall so advise the purchaser or lessee.
§858-514. Registered sex offenders or violent crime offenders—no duty to provide notice regarding.
The provisions of the Sex Offenders Registration Act and the Mary Rippy Violent Crime Offenders
Registration Act shall not be construed as imposing a duty upon a person licensed under the Oklahoma Real
Estate License Code to disclose any information regarding an offender required to register under such provision.
eDuCAtIOn AnD ReCOVeRY FunD
§858-601. Creation—Status—Appropriation—expenditures—use of funds—eligibility to recover.
A. There is hereby created in the State Treasury a revolving fund for the Oklahoma Real Estate Commission
to be designated “Oklahoma Real Estate Education and Recovery Fund.” The fund shall consist of monies
received by the Oklahoma Real Estate Commission as fees assessed for the Oklahoma Real Estate Education
and Recovery Fund under the provisions of this act. The revolving fund shall be a continuing fund not subject to
fiscal year limitations and shall be under the administrative direction of the Oklahoma Real Estate Commission.
The Oklahoma Real Estate Commission may invest all or part of the monies of the fund in securities offered
through the “Oklahoma State Treasurer’s Cash Management Program.” Any interest or dividends accruing from
the securities and any monies generated at the time of redemption of the securities shall be deposited in the
Oklahoma Real Estate Education and Recovery Fund. All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Oklahoma Real Estate Commission for the purposes
specified in Section 858-605 of this title. Expenditures from said fund shall be made pursuant to the laws of
this state and the statutes relating to the said Commission, and without legislative appropriation. Warrants for
expenditures from said fund shall be drawn by the State Treasurer, based on claims signed by an authorized
employee or employees of the said Commission and approved for payment by the Director of State Finance.
B. Monies in the fund shall be used to reimburse any claimant who has been awarded a judgment, subject
to subsection C of this section, by a court of competent jurisdiction to have suffered monetary damages by an
Oklahoma real estate licensee in any transaction for which a license is required under the Oklahoma Real Estate
License Code because of an act constituting a violation of the Oklahoma Real Estate License Code.
C. In determining a claimant’s eligibility to recover from the fund, the Commission may conduct an inde-pendent
review of the merits, findings and damages involved in the underlying action and may conduct an
evidentiary hearing to determine if a claim is eligible for recovery from the fund and the amount of damages
awarded are due to an act constituting a violation of the Oklahoma Real Estate License Code.
§858-602. Additional Fee—Disposition.
A. An additional, nonrefundable fee as promulgated by rule by the Commission shall be added to and pay-able
with the license fee for both new licenses and renewals of licenses for each licensee as provided in Section
858-307.1 of this title. Such additional fee shall be deposited in the Oklahoma Real Estate Education and
Recovery Fund.
B. If a license is issued for a period of less than thirty-six (36) months, such additional fee shall be prorated
to the nearest dollar and month.
C. If a real estate sales associate or provisional sales associate shall qualify for a license as a real estate
broker, the additional fee for the remainder of the term shall be prorated to the nearest dollar and month and
credited to the additional fee added to the payable with the real estate broker license fee.
D. At the close of each fiscal year, the Commission shall transfer into the Oklahoma Real Estate Commission
Revolving Fund any money in excess of that amount required to be retained in the Oklahoma Real Estate
Education and Recovery Fund and that amount authorized to be expended as provided within this Code that is
remaining in the Oklahoma Education and Recovery Fund and unexpended.
§858-603. eligibility to recover from fund—Ineligibility.
A. Any claimant shall be eligible to seek recovery from the Oklahoma Real Estate Education and Recovery
Fund if the following conditions have been met:
1. An action has been filed in district court based upon a violation specified in the Oklahoma Real Estate
License Code;
2. The cause of action accrued not more than two (2) years prior to the filing of the action;
3. At the commencement of an action, the party filing the action shall immediately notify the Commission
to this effect in writing and provide the Commission with a file-stamped copy of the petition or affidavit. Said
Commission shall have the right to enter an appearance, intervene in, defend, or take any action it may deem
appropriate to protect the integrity of the Fund. The Commission may waive the notification requirement if it
determines that the public interest is best served by the waiver, that is to best meet the ends of justice and that
the claimant making application made a good faith effort to comply with the notification requirements;
4. Final judgment is received by the claimant upon such action;
5. The final judgment is enforced as provided by statute for enforcement of judgments in other civil actions
and that the amount realized was insufficient to satisfy the judgment; and
6. Any compensation recovered by the claimant from the judgment debtor, or from any other source for any
monetary loss arising out of the cause of action, has been applied to the judgement awarded by the court.
B. A claimant shall not be qualified to make a claim for recovery from the Oklahoma Real Estate Education
and Recovery Fund, if:
18
19
1. The claimant is the spouse of the judgment debtor or a personal representative of such spouse;
2. The claimant is a licensee who acted in their own behalf in the transaction which is the subject of the
claim; or
3. The claimant’s claim is based upon a real estate transaction in which the claimant is, through their own
action, jointly responsible for any resulting monetary loss with respect to the property owned or controlled by
the claimant.
§858-604. Application for payment—Amount—Assignment of rights, etc.—Insufficient funds—
Revocation of brokers license.
A. Any claimant who meets all of the conditions prescribed by this act may apply to the Commission for
payment from the Oklahoma Real Estate Education and Recovery Fund, in an amount equal to the unsatis-fied
portion of the claimant’s judgment, which is actual or compensatory damages, or Twenty-Five Thousand
Dollars ($25,000.00), whichever is less. The claimant is entitled to reimbursement for attorney fees reasonably
incurred in the litigation not to exceed twenty-five percent (25%) of the claimant’s amount approved by the
Commission. Attorney fees charged and received shall be documented, verified, and submitted with the claim.
Court costs and other expenses shall not be recoverable from the fund.
B. Upon receipt by the claimant of the payment from the Oklahoma Real Estate Education and Recovery
Fund, the claimant assigns the claimant’s right, title and interest in that portion of the judgment to the
Commission which shall be subrogated up to the amount actually paid by the fund to the claimant or to the
claimant and the claimant’s attorney. Upon suit to collect upon a judgment, the claimant shall have priority
over the fund. Any amount subsequently recovered on the judgment by the Commission, to the extent of the
Commission’s right, title and interest therein, shall be used to reimburse the Oklahoma Real Estate Education
and Recovery Fund.
C. Payments for claims arising out of the same transaction which constitutes a claimant’s cause of action
based upon a violation of the Oklahoma Real Estate License Code shall be limited in the aggregate of Fifty
Thousand Dollars ($50,000.00) irrespective of the number of claimants or parcels of real estate involved in the
transaction.
D. Payments for claims based upon judgments against any one licensee shall not exceed in the aggregate
Fifty Thousand Dollars ($50,000.00).
E. If at any time the monies in the Oklahoma Real Estate Education and Recovery Fund are insufficient to
satisfy any valid claim, or portion thereof, the Commission shall satisfy such unpaid claim or portion thereof
as soon as a sufficient amount of money has been deposited in the fund by collecting special levy from the
members of the fund of an amount not to exceed Five Dollars ($5.00) each fiscal year. If the additional levy
is not sufficient to pay all outstanding claims against the fund, the claims shall be paid as the money becomes
available. Where there is more than one claim outstanding, the claims shall be paid in the order that they were
approved.
F. Any claim against a corporation, association or partnership would be imputed to the managing broker(s)
at the time the cause of action arose.
G. The license of said licensee, shall be automatically revoked upon the payment of any amount from the
Oklahoma Real Estate Education and Recovery Fund on a judgment against a licensee. The license shall not be
considered for reinstatement until the licensee has repaid in full, plus interest at the rate of seven percent (7%)
a year, the amount paid from the Oklahoma Real Estate Education and Recovery Fund on the judgment against
the licensee.
§858-605. expenditure of funds.
At any time when the total amount of monies, deposited in the Oklahoma Real Estate Education and
Recovery Fund exceeds Two Hundred Fifty Thousand Dollars ($250,000.00), the Commission in its discretion
may expend such excess funds each fiscal year for the following purposes:
1. To promote the advancement of education in the field of real estate for the benefit of the general public
and those licensed under the Oklahoma Real Estate License Code, but such promotion shall not be construed to
allow advertising of this profession;
2. To underwrite educational seminars and other forms of educational projects for the benefit of real estate
licensees;
3. To establish real estate courses at institutions of higher learning located in the state and accred ited by
the State Regents for Higher Education for the purpose of making such courses available to licensees and the
general public; and
4. To contract for a particular educational project in the field of real estate to further the purposes of the
Oklahoma Real Estate License Code.
20
OKlAHOmA ReAl eStAte COmmISSIOn RuleS
(AS OF JulY 1, 2011)
tABle OF COntentS
tItle 605. OKlAHOmA ReAl eStAte COmmISSIOn
Chapter Section
1. Administrative Operations................................................................................................................605:1-1-1
10. Requirements, Standards and Procedures .....................................................................................605:10-1-1
________________________________
CHApteR 1. ADmInIStRAtIVe OpeRAtIOnS
Subchapter Section
1. General Provisions ........................................................................................................................605:1-1-1
[Authority: 75 O.S., Section 858-208]
SuBCHApteR 1. GeneRAl pROVISIOnS
Section
605:1-1-1 Statement of Purpose
605:1-1-2 Authority
605:1-1-3 Title and Construction
605:1-1-4 Operational Procedures
______________________________________________
CHApteR 10. ReQuIRementS, StAnDARDS AnD pROCeDuReS
Subchapter Section
1. General Provisions ......................................................................................................................605:10-1-1
3. Education and Examination Requirements ................................................................................605:10-3-1
5. Instructor/Entity Requirements and Standards ...........................................................................605:10-5-1
7. Licensing Procedures and Options .............................................................................................605:10-7-1
9. Broker’s Operational Procedures ................................................................................................605:10-9-1
11. Associate’s Licensing Procedures ............................................................................................605:10-11-1
13. Trust Account Procedures .........................................................................................................605:10-13-1
15. Disclosures ...............................................................................................................................605:10-15-1
17. Causes for Investigation; Hearing Process; Prohibited Acts; Discipline ................................605:10-17-1
[Authority: 75 O.S., Section 858-208]
SuBCHApteR 1. GeneRAl pROVISIOnS
Section
605:10-1-1 Purpose
605:10-1-2 Definitions
605:10-1-3 Appeal of Administrative Decisions; Procedures
605:10-1-4 Returned Checks—Disposition
SuBCHApteR 3. eDuCAtIOn AnD eXAmInAtIOn ReQuIRementS
Section
605:10-3-1 Prelicense Education Requirements
605:10-3-2 Application for License
605:10-3-3 Proceedings Upon Application for a License
21
605:10-3-4 Broker Applicant; Experience
605:10-3-5 Examinations
605:10-3-6 Continuing Education Requirements
605:10-3-7 Provisional Sales Associate Postlicense Education Requirement
SuBCHApteR 5. InStRuCtOR AnD entItY ReQuIRementS AnD StAnDARDS
Section
605:10-5-1 Approval of Prelicense Course Offerings
605:10-5-1.1 Approval of Post-License Course Offerings
605:10-5-2 Approval of Continuing Education Offerings
605:10-5-3 Standards for Commission Approved Real Estate Courses
SuBCHApteR 7. lICenSInG pROCeDuReS AnD OptIOnS
Section
605:10-7-1 License Issuance
605:10-7-1.1 Documentation Required for Compliance Necessary to Verify Citizenship, Qualified Alien
Status, and Eligibility Under the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996
605:10-7-2 License Terms; Renewals; Reinstatements
605:10-7-3 Placement of License on Inactive Status
605:10-7-4 Request for Activation or Reissuance of License
605:10-7-5 Name Changes
605:10-7-6 Certification of License History
605:10-7-7 Branch Offices
605:10-7-8 Corporation Licensing Procedures and Requirements of Good Standing
605:10-7-8.1 Partnership Licensing Procedures and Requirements of Good Standing
605:10-7-8.2 Association Licensing Procedures and Requirements of Good Standing
605:10-7-8.3 Sole Proprietor Licensing Procedures
605:10-7-9 Nonresident Licensing
605:10-7-10 Resident Applicants Currently or Previously Licensed in Other States
SuBCHApteR 9. BROKeR’S OpeRAtIOnAl pROCeDuReS
Section
605:10-9-1 Place of Business and Broker Requirements
605:10-9-2 Office Identification
605:10-9-3 Trade Names
605:10-9-4 Advertising
605:10-9-5 Broker Change of Address or telephone number
605:10-9-6 Death or Disability of Broker
605:10-9-7 Requirements for Cessation of Real Estate Activities
605:10-9-8 Branch Office Closing Instructions
SuBCHApteR 11. ASSOCIAte’S lICenSInG pROCeDuReS
Section
605:10-11-1 Acts of Associates
605:10-11-2 Associate Licenses
605:10-11-3 Associate’s Corporation or Association
SuBCHApteR 13. tRuSt ACCOunt pROCeDuReS
Section
605:10-13-1 Duty to Account; Broker
605:10-13-2 Duty to Account; Associate
605:10-13-3 Special Escrow Disbursement
22
SuBCHApteR 15. DISClOSuReS
Section
605:10-15-1 Disclosure of Beneficial Interest or Referrals
605:10-15-2 Broker Relationships Act to become effective November 1, 2000
605:10-15-3 Requirements for Furnishing Psychological Factors
605:10-15-4 Residential Property Condition Disclosure Act Forms
SuBCHApteR 17. CAuSeS FOR InVeStIGAtIOn—HeARInG pROCeSS—
pROHIBIteD ACtS—DISCIplIne
Section
605:10-17-1 Commissions and Disputes
605:10-17-2 Complaint Procedures
605:10-17-3 Complaint Hearings; Notice and Procedures
605:10-17-4 Prohibited Dealings
605:10-17-5 Substantial Misrepresentation
605:10-17-6 Requirements for Suspended/Revoked Brokers and Associates
605:10-17-7 Cessation of Licensed Activities upon Loss of License
AppenDIX
Appendix A. Residential Property Condition Disclosure Statement
Appendix B. Residential Property Condition Disclaimer Statement Form
23
CHApteR 1. ADmInIStRAtIVe OpeRAtIOnS
Subchapter Section
1. General Provisions ............................................................................................................................605:1-1-1
[Authority: 75 O.S., Section 858-208]
SuBCHApteR 1. GeneRAl pROVISIOnS
Section
605:1-1-1 Statement of purpose
605:1-1-2 Authority
605:1-1-3 title and Construction
605:1-1-4 Operational procedures
605:1-1-1. Statement of purpose
The fundamental and primary purpose of the Real Estate Commission is to safeguard the public interest
and provide quality services by assisting and providing resources; encouraging and requiring high standards
of knowledge and ethical practices of licensees; investigating and sanctioning licensed activities; and through
the prosecution of any unlicensed person who violates the “Oklahoma Real Estate License Code and Rules.”
605:1-1-2. Authority
The rules of this Title are hereby adopted in accordance with the provisions of Title 59, Section 858-101
et seq. and the provisions of Sections 301-327 of Title 75, Oklahoma Statutes, 1971.
605:1-1-3. title and construction
The rules of this Title shall be known as the “Oklahoma Real Estate Commission Rules.”
605:1-1-4. Operational procedures
(a) Organization. The organization of the Commission is declared to be that as enumerated in Sections
858-201 through 858-204 of the heretofore described Code.
(b) Operational procedures. The general course and method of operation shall be as hereinafter specified
in overall provisions of the rules of this Title.
(c) Open Records Act. In conformance with Title 51, Section 24 A.1., et seq, Oklahoma Statutes, 1985,
titled “Oklahoma Open Records Act” all open records of the Real Estate Commission may be inspected and
copied in accordance with procedures, policies, and fee as required by the Commission. The Commission
shall charge the following:
(1) A fee of $.25 for each xerographic copy or micrographic image.
(2) A fee of $1.00 for each copy to be certified.
(3) A fee of $10.00 per hour for a record or file search.
(4) A fee of Forty Dollars ($40.00) per extract for License Data extract.
(5) A fee of Fifty Dollars ($50.00) every three (3) months for an Examinee Data extract.
(6) A fee of no more than Seven Dollars and Fifty Cents ($7.50) for a convenience fee for any elec-tronic/
on-line transaction.
(d) Directory of licensees. One copy of the Directory of Licensees shall be provided each licensee
if Commission funds permit. Additional copies shall be available to licensees and the public from the
Commission upon payment of a charge based on actual cost of production and printing. Copies of the
Directory may be furnished to governmental agencies without charge as inventory permits.
(e) petition for promulgation, amendment or repeal of any rule. Any person may petition the Commission
in writing requesting a promulgation, amendment or repeal of any rule.
(1) The petition must be in writing in business letter form or in the form of petitions used in civil cases
in this State, and shall contain an explanation and the implications of the request and shall be:
(A) Signed by the person filing the petition and be filed with the Secretary-Treasurer of the
Commission.
(B) Submitted to the Commission at least thirty (30) days prior to a regular meeting.
(C) Considered by the Commission at its first meeting following such thirty (30) days.
24
(D) Scheduled for a public hearing before the Commission within sixty (60) days after being
considered by the Commission in a regular meeting.
(2) Within sixty (60) days after the public hearing, the Commission shall either grant or deny the
petition. If the petition is granted, the Commission shall immediately begin the procedure for the prom-ulgation,
amendment or repeal of any rule pursuant to Title 75 O.S. 303.
(3) If the petition is denied the parties retain their rights under 75 O.S. Sec. 318, to proper Judicial
Review.
(f) petition for declaratory ruling of any rule or order.
(1) Any person may petition the Commission for a declaratory ruling as authorized by Section 307 of
Title 75 of the Oklahoma Statutes as to the applicability of any rule or order of the Commission. Such
petition shall:
(A) be in writing;
(B) be signed by the person seeking the ruling;
(C) state the rule or order involved;
(D) contain a brief statement of facts to which the ruling shall apply; and
(E) if known and available to petitioner, include citations of legal authority in support of such
views.
(2) The Commission shall have at least thirty (30) days to review the petition. Following the review
period, the Commission shall consider the petition at its next meeting.
(3) The Commission may compel the production of testimony and evidence necessary to make its
declaratory ruling.
(4) Declaratory rulings shall be available for review by the public at the Commission office.
(g) Contract Forms Committee.
(1) The Contract Forms Committee is required to draft and revise real estate purchase and/or lease
contracts and any related addenda for standardization and use by real estate licensees (Title 59 O.S. 858-
208 {14}).
(2) The committee shall consist of eleven (11) members. Three (3) members shall be appointed
by the Oklahoma Real Estate Commission; three (3) members shall be appointed by the Oklahoma
Bar Association; and five (5) members shall be appointed by the Oklahoma Association of Realtors,
Incorporated.
(3) The initial members’ terms shall begin upon development of the forms and each member
shall serve through the effective date of implementation of form(s) plus one (1) year. Thereafter, the
Oklahoma Real Estate Commission shall appoint one (1) member for one (1) year, one (1) member
for two (2) years, and one (1) member for three (3) years; the Oklahoma Bar Association shall appoint
one (1) member for one (1) year, one (1) member for two (2) years, and one (1) member for three (3)
years and; the Oklahoma Association of Realtors, Incorporated shall appoint two (2) members for one
(1) year, two (2) members for two (2) years, and one (1) member for three (3) years. Thereafter, terms
shall be for three (3) years and each member shall serve until their term expires and their successor has
been appointed. Any vacancy which may occur in the membership of the committee shall be filled by
the appropriate appointing entity.
(4) A member can be removed for just cause by the committee.
(5) Each member of the committee shall be entitled to receive travel expenses essential to the perfor-mance
of the duties of his appointment, as provided in the State Travel Reimbursement Act.
CHApteR 10. ReQuIRementS, StAnDARDS AnD pROCeDuReS
Subchapter Section
1. General Provisions .........................................................................................................................605:10-1-1
3. Education and Examination Requirements ...................................................................................605:10-3-1
5. Instructor and Entity Requirements and Standards .......................................................................605:10-5-1
7. Licensing Procedures and Options ................................................................................................605:10-7-1
9. Broker’s Operational Procedures ...................................................................................................605:10-9-1
11. Associate’s Licensing Procedures ...............................................................................................605:10-11-1
13. Trust Account Procedures ............................................................................................................605:10-13-1
15. Disclosures ..................................................................................................................................605:10-15-1
17. Causes for Investigation—Hearing Process—Prohibited Acts—Discipline .............................605:10-17-1
25
[Authority: 59 O.S., Section 858-208]
SuBCHApteR 1. GeneRAl pROVISIOnS
Section
605:10-1-1. purpose
605:10-1-2. Definitions
605:10-1-3. Appeal of administrative decisions—procedures
605:10-1-4. Returned checks—disposition
605:10-1-1. purpose
The rules of this Chapter establish procedures and standards that apply to real estate licensees, real estate
schools and instructors, and which must be complied with as authorized under the provisions of the Oklahoma
Real Estate License Code, Title 59, O.S., Sections 858-101 through 858-605.
605:10-1-2. Definitions
When used in this Chapter, masculine words shall include the feminine and neuter, and the singular
includes the plural. The following words or terms, when used in this Chapter, shall have the following
meaning, unless the context clearly indicates otherwise:
“Advertising” means all forms of representation, promotion and solicitation disseminated in any
manner and by any means of communication to consumers for any purpose related to licensed real estate
activity.
“Bona fide offer” means an offer in writing.
“Branch office broker” means a person who qualified for a broker license and who is designated by
a broker to direct and supervise a branch office on behalf of the broker in conformance with Section 858-
310 of the Code. A branch office broker is considered an associate of the broker and a managing broker of
the branch office.
“Broker” means a sole proprietor, corporation, managing corporate broker of a corporation, associa-tion,
managing broker member or manager of an association, partnership, or managing partners of a part-nership
and shall be one and the same as defined as a broker in Section 858-102 of the Code and whom
the Commission shall hold responsible for all actions of associates who are assigned to said broker.
“Code” when used in the rules of this Chapter, means Title 59, Section 858-101 et seq, Oklahoma
Statutes as adopted 1974 and amended.
“entity” means association, corporation and partnership.
“Filed” means the date of the United States postal service postmark or the date personal delivery is
made to the Commission office.
“Firm” means a sole proprietor, corporation, association or partnership.
“Inactive status” means a period in which a licensee is prohibited from performing activities which
require an active license.
“nonresident” means a person who is licensed to practice in this state, however, does not maintain a
place of business in this state but maintains a place of business in another state and who periodically comes
to this state to operate and perform real estate activities.
“previously licensed applicant” means a person who has been licensed in another state and is desir-ing
to obtain a resident license in this state.
“provisional sales associate” shall be synonymous in meaning with sales associate except where it
is specifically addressed in Subchapters 3, 5 and 7 of this Chapter.
“Resident” means a person who is licensed in this state and operates from a place of business in this
state.
“Sole proprietor” means a broker who is the sole owner of a real estate business.
“trade name” means the name a firm is to be known as and which is used in advertising by the firm
to promote and generate publicity for the firm. A firm may or may not do business in the name under which
their license is issued but must register with the Commission all trade names used by the firm.
605:10-1-3. Appeal of administrative decisions; procedures
(a) Unless specifically provided for elsewhere in this Chapter, any adverse administrative action or decision
rendered by the Commission or its staff on behalf of the Commission, may be appealed by the adversely
affected party filing within thirty (30) days of notice of such action or decision, a written request for a hearing.
26
(b) Upon receipt of a request for any non-disciplinary hearing provided for in this Section, or any other rule
of this Chapter, the Secretary-Treasurer shall schedule an administrative decision hearing before a Hearing
Examiner, a selected panel of the Commission, or the Commission as a whole giving at least fifteen (15)
days notice of such hearing. Such hearing shall be public except that upon motion, witnesses, other than the
adversely affected appealing party, may be excluded from the hearing room when such witnesses are not tes-tifying.
A court reporter shall be present to record the proceedings in behalf of the Commission. Any person
desiring a copy of the transcript of the proceedings may purchase such from the reporter.
(c) In the case of a proceeding conducted by the Commission as a whole or a panel of the Commission, the
Chairman or his designee shall preside. Designated counsel shall advise the chair as to rulings upon the ques-tions
of admissibility of evidence, competence of witnesses and any other question of law where such ruling
is required or requested.
(d) The appealing party may present his or her own evidence or may present such through his or her counsel.
In order that the hearing will not be encumbered by evidence having no bearing on the issues, testimony by
all witnesses will be limited to matters relevant to the issues involved.
(e) The order of procedure shall be as follows:
(1) Recitation of the administrative action or decision.
(2) Presentation of the adversely affected party’s appeal.
(3) Questioning of the appealing party by the hearing panel or Hearing Examiner.
(4) Response by the Commission or Commission representatives detailing grounds for and
basis for the administrative decision or action.
(5) Examination of witnesses by appealing party with cross-examination of such witnesses.
(6) Closing statements by the appealing party.
(f) If the case be heard by the Commission as a whole, the Commission shall deliberate and render its deci-sion
with confirmation of such decision in writing in the form of an Order distributed to all parties by mail.
(g) In the case of a hearing conducted by a Hearing Examiner or a panel of the Commission, following the
hearing, the Hearing Examiner or attorney sitting as counsel to the panel of the Commission shall prepare
a recommended Order to be considered by the Real Estate Commission as a whole at a future meeting. All
parties will be furnished copies of the recommended Order and notified as to the date the recommendations
will be considered by the Commission for adoption. At the same time, notice will be given also to the parties
that written exceptions or requests to present oral exceptions or arguments, if any, should be submitted on or
before a designated date pursuant to Section 311, Title 75, Oklahoma Statutes. Upon adoption of the recom-mended
Order by the Commission as a whole, such Order shall be distributed to all parties.
605:10-1-4. Returned checks—disposition
(a) All fees are received subject to collection. Payment of a fee to the Commission with a dishonored check
shall be prima facie evidence of a violation of Title 59, Section 858-312.
(b) If the Commission receives a check that is dishonored upon presentation to the bank on which the check
is drawn, a returned check fee of Thirty-five Dollars ($35.00) will be charged. If such payment is for fees, or
other amounts due the Commission, and the check is not replaced within the specified time frame as deter-mined
by the Commission, such request shall be deemed incomplete and the transaction null and void.
(c) Other services may be delayed or denied if a check is dishonored upon presentation to the bank on which
the check is drawn.
SuBCHApteR 3. eDuCAtIOn AnD eXAmInAtIOn ReQuIRementS
Section
605:10-3-1. prelicense education requirements
605:10-3-2. Application for license
605:10-3-3. proceedings upon application for a license
605:10-3-4. Broker applicant; sales associate experience
605:10-3-5. examinations
605:10-3-6. Continuing education requirements
605:10-3-7. provisional sales associate postlicense education requirement
605:10-3-1. prelicense education requirements
(a) On and after July 1, 1993, as evidence of an applicant’s having satisfactorily completed those education
requirements as set forth in Sections 858-302 and 858-303 of the Code, each applicant for licensure shall
27
present with his or her application a certification showing successful completion of the applicable course of
study approved by the Commission as follows:
(1) To qualify an applicant for examination and licensure as a provisional sales associate, the course
shall consist of at least ninety (90) clock hours of instruction or its equivalent as determined by the
Commission. In order for a provisional sales associate to obtain a sales associate license, the provi-sional
sales associate must, following issuance of a provisional license, complete additional education as
required in Section 858-302 of the Code. The prelicense course of study shall be referred to as the Basic
Course of Real Estate, Part I of II and shall encompass the following areas of study:
(A) Real Estate Economics and Marketing
(B) Nature of Real Estate
(C) Rights and Interest in Real Estate
(D) Legal Descriptions
(E) Title Search, Encumbrances, and Land Use Control
(F) Transfer of Rights
(G) Service Contracts
(H) Estimating Transaction Expenses
(I) Value and Appraisal
(J) Marketing Activities
(K) Fair Housing
(L) Contract Law Overview
(M) Contract Law and Performance
(N) Offers and Purchase Contracts
(O) Financing Real Estate
(P) Closing a Transaction
(Q) Regulations Affecting Real Estate
(R) Disclosures and Environmental Issues
(S) Property Management and Leasing
(T) Risk Management
(U) Professional Standards of Conduct
(V) Law of Agency
(2) To qualify an applicant for examination and licensure as a broker, the course shall consist of at least
ninety (90) clock hours of instruction or its equivalent as determined by the Commission. Such course
of study shall be referred to as the Advanced Course in Real Estate and shall encompass the following
areas of study:
(A) Laws and Rules Affecting Real Estate Practice
(B) Broker Supervision
(C) Establishing a Real Estate Office
(D) Professional Development
(E) Business, Financial, and Brokerage Management
(F) Oklahoma Broker Relationships
(G) Anti-Trust and Deceptive Trade
(H) Risk Management and Insurance
(I) Mandated Disclosures, Hazards, and Zoning
(J) Real Estate Financing
(K) Specialized Property Operations and Specialty Areas
(L) Trust Accounts and Trust Funds
(M) Closing a Real Estate Transaction
(N) Closing Statements
(O) Professional Standards of Conduct
(P) Property Ownership
(Q) Land Use Controls and Regulations
(R) Valuation and Market Analysis
(S) Law of Agency
(T) Contracts
(U) Transfer of Property
(V) Practice of Real Estate
(W) Real Estate Calculations
28
(b) As evidence of an applicant’s having successfully completed those education requirements as set forth in
Section 858-304 of the Code, each applicant shall present a certified transcript from an institution of higher
education, accredited by the Oklahoma State Regents for Higher Education or the corresponding accrediting
agency of another jurisdiction.
(1) The basic course of real estate shall be limited to Basic Real Estate Principles and Practices; pro-vided,
however, that a course or combination of courses not so titled may be accepted if the course
content has been determined by the Commission to be equivalent as one and the same as enumerated in
this Section.
(2) The advanced course of real estate shall be limited to Advanced Real Estate Principles and Practices;
provided that a course or combination of courses not so titled may be accepted if the course content has
been determined by the Commission to be equivalent as one and the same as that enumerated in this
Section.
(3) The Commission shall accept in lieu of a certified transcript a course completion certificate as pre-scribed
by the Commission.
(c) entities allowed to seek approval. The education courses required of this Section shall be satisfied by
courses approved by the Commission and offered by:
(1) The Commission
(2) An area vocational-technical school
(3) A college or university
(4) A private school
(5) The Oklahoma Association of Realtors, the National Association of Realtors, or any affiliate there-of,
(6) The Oklahoma Bar Association, American Bar Association, or any affiliate thereof; or
(7) An education provider.
(d) Attendance and successful completion required for in-class credit. To complete any in-class offer-ing,
a person must physically be present during all of the offering time and successfully complete all course
requirements to include an examination.
(e) Successful completion of materials and examination required for distance education credit. To
complete a distance education course offering, a person must successfully complete all course requirements
to include all modules and an examination.
605:10-3-2. Application for license
(a) Requirements for completing application.
(1) Any person seeking a real estate license shall make application for such license on a form
provided by the Commission. The form shall contain, but not be limited to, the following:
(A) Legal name to include first, middle and last name.
(B) Routine biographical information.
(C) License history in Oklahoma and other states.
(D) Criminal and/or civil charges or convictions, including bankruptcy and judgments.
(E) Compliance with Title 59 O.S. 858.301.1 regarding felony convictions.
(F) Recent photograph.
(G) Birth date.
(H) Evidence of successful completion of course requirement as specified in the “Code”.
(I) A sworn statement as to accuracy of the application information.
(J) Documentation required for compliance necessary to verify citizenship, qualified alien status,
and eligibility under the Personal Responsibility and Work Opportunity Reconciliation Act
of 1996.
(K) Social security number, pursuant to Title 56, Oklahoma Statutes, Section 240.21A.
(L) Submit to a national criminal history record check, as defined by Section 150.9 of Title 74
of the Oklahoma Statutes. A fee amount, not to exceed sixty dollars ($60.00), shall be sent
to the Commission to begin the process of the national criminal history check.
(i) A completed national criminal history record check, completed for the Commission, shall
be valid for six (6) months from the date of issuance from the issuing authority.
(ii) In the event an applicant is not physically able to submit to finger printing, other applicant
identifiers shall be utilized, i.e., name, birth date and social security number.
(2) An applicant indicating a bankruptcy or judgment, criminal and/or civil charges or convictions
on the application, must submit with the application official documents to the Commission which
29
pertain to the disposition of the matter. If official documents are unable to be obtained, a detailed letter
explaining the matter(s) must be attached to the application.
(b) Applicant shall appear for examination. Each applicant shall appear for an examination as soon as
possible subsequent to the filing of an approved application or the signing of a form as required in 605:10-
3-3.
(c) Applicant must be of good moral character. The application submitted by an individual seeking a
license must indicate that the applicant possesses a reputation for honesty, truthfulness, trustworthiness,
good moral character, and that he or she bears a good reputation for fair dealing.
(d) Determining good moral character. In determining whether or not an applicant meets the definition
of good moral character, the Commission will consider, but not be limited to, the following:
(1) Whether the probation period given in a conviction or deferred sentence has been completed and
fully satisfied to include fines, court costs, etc.
(2) Whether the restitution ordered by a court in a criminal conviction or civil judgement has been
fully satisfied.
(3) Whether a bankruptcy that is real estate related has been discharged.
(4) Whether an applicant has been denied licensure or a license has been suspended or revoked by this
or any other state or jurisdiction to practice or conduct any regulated profession, business or vocation
because of any conduct or practices which would have warranted a like result under the Oklahoma
“Code”.
(5) Whether an applicant has been guilty of conduct or practices in this state or elsewhere which would
have been grounds for revocation or suspension under the current Oklahoma “Code” had the applicant
been licensed.
(e) Subsequent good conduct. If, because of lapse of time and subsequent good conduct and reputation
or other reason deemed sufficient, it shall appear to the Commission that the interest of the public will not
likely be in danger by the granting of such license, the Commission may approve the applicant as relates
to good moral character.
605:10-3-3. proceedings upon application for a license
(a) Qualified application.
(1) Approved application. If the Commission is of the opinion that an applicant for license is quali-fied,
the application shall be approved.
(2) Denial of application. If, from the application filed, or from answers to inquiries, or from com-plaints
or information received, or from investigation, it shall appear to the Commission the applicant
is not qualified at any time before the initial license is issued, the Commission shall refuse to approve
the application and shall give notice of that fact to the applicant within fifteen (15) days after its ruling,
order or decision.
(b) Appeal of denial of application. Upon written request from the applicant, filed within thirty (30)
days after receipt of such notice of denial, the Commission shall set the matter for hearing to be conducted
within sixty (60) days after receipt of the applicant’s request.
(c) Applicant hearing. The hearing shall be at the time and place as prescribed by the Commission. At
least ten (10) days prior to the date set for hearing the Commission shall notify the applicant and other per-sons
protesting, and shall set forth in a notice the reason or reasons why the Commission refused to accept or
approve the application. The written notice of the hearing may be served by personal delivery to the applicant
and protesters, or by mailing the same by registered or certified mail to the last known address of the applicant
and/or protesters.
(d) Hearing procedures. The hearing procedure shall be that as outlined in 605:10-1-3 titled “Appeal of
administrative decisions; procedures.”
605:10-3-4. Broker applicant; experience
(a) No individual shall be licensed as a real estate broker unless in addition to the other requirements in the
Code, he or she has served two (2) years, or its equivalent, as a licensed real estate provisional sales associate
and/or sales associate, with and under the instructions and guidance of a licensed real estate broker of this
state or any other state at least twenty-four (24) months within the five (5) year period immediately prior to
the filing of his or her application for license as a real estate broker in Oklahoma.
(b) An application submitted for the purpose of seeking a license to function as a real estate broker shall not
be accepted for filing by the Commission unless such applicant has completed the two (2) year apprenticeship
requirement on or before the date such application is submitted.
30
605:10-3-5. examinations
(a) Applicant must appear in person. When an application for examination has been submitted to the
Commission, the applicant shall be required to appear in person, at a time and place to be designated by the
Commission, and answer questions based on the required subject matter as prescribed elsewhere in the rules
of this Chapter. On and after August 1, 2001, each broker examination fee shall be Seventy-five Dollars
($75.00) and each provisional sales associate/sales associate examination fee shall be Sixty Dollars ($60.00).
(b) Special Accommodations. In cases where special accommodations are necessary under the require-ments
of the Americans with Disabilities Act, applicants must notify the examination supplier in advance by
submitting a written request, on a form prescribed by the Commission, describing the disability and necessary
accommodations.
(c) Failure to pass examination. If an applicant fails to pass the examination prescribed by the Commission,
the Commission may permit subsequent examinations upon receipt of a new examination fee for each exami-nation
to be attempted.
(d) Applicant request to view failed examination. An applicant who fails the examination has the option
of reviewing their missed questions at the end of their examination. An applicant may challenge the validity
of any question(s) they identify as incorrectly graded. A challenge to a question that pertains to the Oklahoma
law portion of the examination will be sent to the Commission by the examination supplier. A challenge to a
question that pertains to the national portion will fall under the review policy of the examination supplier. In
either case, both the examination supplier and/or the Commission shall have five (5) business days in which
to review and issue a response to the applicant. Applicants will be allowed up to one (1) hour to review their
exam and the applicant will not be allowed to test on the same day they review a failed examination. No notes,
pencils, or electronic devices will be allowed during a review nor will they be allowed to leave the examina-tion
area with the examination questions.
(e) Application valid for one year. The original examination application shall be valid for one (1) year
from date of filing. After such date, an applicant must complete a new original application form.
(f) passing percentile of examination. A score of seventy-five percent (75%) or more shall be considered
a passing grade on the broker or provisional sales associate/sales associate examination.
(g) Validity period of examination results. The results of an examination wherein an applicant scored a
passing grade shall be valid for one (1) year from the date of such examination.
(h) Disciplinary examination fee. A fee shall be charged for an examination which is directed by Order of
the Commission as disciplinary action.
605:10-3-6. Continuing education requirements
(a) Definition. Continuing education shall be defined as any real estate oriented education course or
equivalent, hereinafter called offering(s) intended:
(1) To improve the knowledge of licensees.
(2) To keep licensees abreast of changing real estate practices and laws.
(3) To help licensees meet the statutory requirements for license renewal.
(b) purpose. The purpose of continuing education is to provide an educational program through which
real estate licensees can continually become more competent and remain qualified to engage in real estate
activities for which they are licensed. Such activities involve facts and concepts about which licensees must
be knowledgeable in order to safely and confidently conduct real estate negotiations and transactions in the
public’s best interest.
(c) Goals. The goals of continuing education are:
(1) To provide licensees with opportunity for obtaining necessary current information and knowledge
which will enable them to conduct real estate negotiations and transactions in a legal and professional
manner in order to better protect public interest.
(2) To assure that the licensees are provided with current information regarding new and/or changing
laws and regulations which affect the real estate business.
(3) To ensure that the consumers interest is protected from unknowledgeable licensees.
(d) Objectives. The objectives of continued education are as follows:
(1) For licensees to expand and enhance their knowledge and expertise so as to be continually
effective, competent, and ethical as they practice real estate.
(2) For licensees to review and update their knowledge of federal, state and local laws and regulations
which affect real estate practices.
31
(e) entities allowed to seek approval. The Commission may approve and/or accept any offering provided
by an entity which meets the purposes, goals, and objectives of the continuing education requirement. The
Commission may accept the following offerings as proof of meeting the cont